We will see 10 cents again. Minimum.
On one of the filings today there were three upcoming dates mentioned. The last one was in Mid March of 2013, so that means that this case is going to drag on until at least the summer of 2013.
With hardly any float at all, there will be some good spikes. The Judge granted Palm Beach Capital their motion, and there is going to be a trial where Palm Beach Capital will be forcing the Senior Lenders to answer lots of questions.
If the Senior Lenders want to risk a huge judgement against them, then they are welcome to go through with the trial and see what happens. My advice would be to settle.
8 parties have received subpoenas already. It is almost mathematically impossible to stay under 10 cents the whole way through. Think about it. There is going to have to be a settlement, or there is going to be a verdict. Palm Beach Capital is suing on behalf of shareholders, as they own 37 percent of the shares, and that dwarfs their only other claim, which is their only secured claim, the loan of 5 million.
So, they are going the distance and need for equity to get a payout in order not to take a monster loss. They have shown they are willing to spend the resources to put the Senior Lenders to the test.
If shareholders get a payout of just 8 million that is 10 cents per share. They are gunning for more than that, and they also have potential proceeds to divvy up from the Directors and Officers insurance policies.
I know how the minds of investors work. Most people are horrible at investing. If the price had gone to 15 cents last week when the Judge granted the motion everyone would be piling on and buying more. Most can't think for themselves. I can, and I do.
There is no real chance that this stays under 10 cents all the way through the BK process. That means, that at a minimum, you will more than double your money from here. That is the worst case scenario, as there will likely be multiple spikes, and they can come at any time.
