Technical Olympic USA, Inc. (TOUS)

[Duffau]

Not sure why pps should be droping now, but maybe just seeing all these costs of administration and claims is discouraging to some small investors. The number of shares sold is still pretty small so not everyone is panicking.

The case is proceeding against the first lien holders and the result could be good for the shareholders.

If they win, one might ask if it affects shareholders. I say it will because of a unique supreme court case from long ago.

The case is an "all or nothing" type case that often says that all classes benefit if one class benefits. The Oliver Wendell Holmes decision is at Moore v. Bay, 284 U.S. 4 (1931).

I read it to say that, if the suit is successful, this takes the balance sheet (equity) from negative to positive in a substantial way, immediately.

My argument for owning this stock has been that eventually, the companies continued operations will take it there even in a modest recovery, or a buyer will come along eventually and take it there, but those take longer.

Therefore the pps should be going up with the news, not down....

Go figure.