It’s far from over. The class action lawyers and all the institutional investors (about half the float) are not happy tonight. They saw the only public letter from CEO last Fall talk about how there was plenty of cash flow to get by during a recession. It’s looking like he had already started this deal at the same time he was publicly saying all is good and “I don’t know why the price is down” BS. And there were multi-100 million dollar deals on the table for the pet division!!! In addition, just last week the IR Carey was telling shareholders that there were plans to move to a higher exchange and they were working on the price, etc and would be communicating with shareholders soon. It won’t be hard to prove that shareholders were misled and it will be easy to prove this was not the only out for CEO HUSSEY.
No, this smells like a good ole boy deal between the lenders (the original LBO boys) and Hussey. It used to be a CEO did nothing that hurt the shareholder. Today, with investment bankers leading the way, common shareholders are being thrown to the ditch!! HUSSEY and the LBO boys make out like bandits!! Congress and Americans are getting real tired of this!!
Spectrum is a big big company (over $2 billion in sales) with many many name brand products. This is not a regular penny stock in that there is money at Spectrum for lawyers to go after and trust me, they will.
The bottom line is this doesn’t go through until approved by a BK court and that could take weeks or months. During that time daytraders, MMs, trading groups, shorts, etc will be pushing this up and down like a yo-yo. We moved down 3 pennies or 64% on less than 3 million shares traded at eod. What would 10-20 million shares traded give us? I don’t know, but I’m guessing this moves up and down between a penny and a dime. We get a lawsuit notice and up, then financials and down and then up. Maybe we’ll all get our money back that way!! LOL
One thing I do know, institutional buyers do not like getting screwed over!! It will be a cold day in you know where before ANY institutional buyer touches new stock from Hussey and Spectrum. Oh and if I was HUSSEY, I’d hire someone to start my car every morning!! LOL
