Replies to post #485 on Adeptus Health Inc. (fka ADPTQ)

[keekee]

I am still sitting on 5000 shares which I will hold until a pronouncement on the common. If a pullback brings it around $0.65 again before any solid statement from company, I will buy more. The fact of a bankruptcy does not necessarily mean wipe-out. Depending any residual equity value, if it is reorg, the shares may emerge under a new entity otherwise they are paid off. We have seen it over and over. Per my April write-up, there is value. Folks sold because mgmt PR stated that they don't believe anything will remain for common. IT IS STANDARD STATEMENT. Check all bankruptcies. In fact, it is implied.

Look at another bankrupt company which I am holding about 40000. HGGGQ. They have the same statement that shareholders may be wiped out "although that would be determined in the continuing bankruptcy proceeding." But, you only need to look at the numbers they filed on May 4 and you'd see that that stock may fetch anywhere between $0.30 to $2 per share when all is settled. My estimate may seem crazy but there's only TWO math you have to do and you see the details. FIRST MATH: What is Deferred Rent? Answer would show that it's just another way of treating rent that is not straightline. Which means that deferred rent is just rent that would be treated just like any other rent. SECOND MATH: What is "Liabilities Subject to Compromise?" In two releases in March they stated that they have some $190 million in lease obligations. Thirty million was the all the debt in the book. So we can conclude that the Deferred rent of $47M and the $122M in the liabilities section are part of the leasehold obligation. From the docket, company has sent termination notices to all leaseholds it did not reassign. So for this trade, all you have to do is to find out the manner in which BK Courts treat leasehold terminations. I will not give that legal advice here although you can find Google helpful. But HGGGQ may return far more money than those that bot ADPTQ at $0.25. I am patient on that one. Just my opinion on another trade.