Technical Olympic USA, Inc. (TOUS)

[Duffau]

Financials Next Thursday after hours.

In the long term, it doesn't make much difference since the company is going to be building new homes for a very long time while under Ch 11. But I expect some movement on Friday week because of the financials. I just don't know whether up or down. Since the last financials showed positive shareholder equity, the next financials will likely show negative equity so I suspect the pps will drop on Friday, but nobody knows. I expect future statements will be more positive so that shareholder equity will definitely be positive by this time next year and more so the year after that.

Rulings by the court are due and much more important than historical statements and thus may affect the pps before Friday. I expect those rulings to be positive to the DIP.

The fraudulent conveyance adversary proceeding could be significant as it could possible set aside all the first lien holder debt. If I was them, I think I'd increase my stake in Tousa and buy it out of bankruptcy rather than take that chance.

I just want everything to stabilize so that other buyers such as Falcone Group can see the potential in this company and make an offer which would take this out of bankruptcy and give the shareholders something.