Technical Olympic USA, Inc. (TOUS)

[deadcat123]

looks like very few are interested in TOUSA stock and not much action lately. Everyone is just waiting for TOUSA's pre-arranged deal with its bondholders. We should hear that in less than 3 weeks from now. According to shortsqueeze.com, there is still 9 millions shares short position at late Dec. 07.

Buyout? I am not sure who will buy or merge with TOUSA or any other builders in stress, i.e., WCI, SPF, BZH, etc. So far, none of distressed builders got bought out or merged with others. TOUSA could be the very first when the builders consolidate in 2008. The buyout price, IMO, should be around $2 to $3 per share even though TOUSA has been trading under 20 cents for a while. The company still worth at least $100 millions dollars at buyout.

The real deal is the pre-arranged deal with its bondholders. If TOUSA can work out a deal without filing Ch. 11 with its bondholders to restructure their $1 billion dollars debts, then, we'll get some fun when the short gets squeezed on news.

Right now, all we can do is just wait for the news and hope that the news is not about CH. 11 restructuring!

Have a good day!