Sure it is possible! They could even walk away with MORE than the company is worth - as can happen in a bankruptcy sitution. Liabilities exceed assets....
I think the possibility of these guys walking away with everything is quite possible, but I doubt if they could borrow any more to actually go "in the hole". That Charloette forclosure is evidence of how fragile their relationship with banks it. I don't think any bank in the world is going to loan these guys any moe money.
Hey Mordicai - have you been able to find any more foreclosures? If the stock was used as collateral for deals, it seems logical that every property these guys own could be in forclosure.
Now I'm laughing at Roger's strategy of issuing shares as collateral. Isn't that the same type of strategy that killed Enron?
My best guess is that tis company still has some assets, but they are all going to be in forclosure, if they aren't already. Anything that is left is probably going to be used to cover "expenses". i.e., a car, office, "business trips", salary, etc. The possibility of a turnaround seems impossible for me. Who in their right mind would invest more money into this company, with management that doesn't even communicate with shareholders, or file financial reports? I'm hearing stories that the new boss is a good guy, but he doesn't seem to have a tongue.... Even an honest guy who wants to stay out of the spotlight would issue a one paragraph statement giving us a rough idea what's going on. The way it stands now, this new guy could care less if more investors bail. You could use the argument that he wants to buy all the shares back VERY cheap, but it would be easier to argue that he wants to drive the company into the ground to line his own pockets through "expenses".
What incentive does this guy have to liquidate the company, and return the profits to shareholders? Is he trying to go to heaven? From everything I hear this is one of the guys that was in the back seat as Roger was driving in the front seat. He's one of the evil gang members that got us into this mess.
What is the possibilty that the new boss is going to turn this company around? Not much chance, in my opinion. To turn this company around you have to find somebody to loan you money to buy more properties. What financial institution would do that given the history of this company?
Some kind of merger is the only way I can see getting out of this mess. It would require that there be real assets, and the new guy to be honest and of good character. Even if he was honest, it sure would be tempting to let this thing drift down further for a few months, and acquire some more shares real cheap. A merger isn't going to happen overnight. It will take time for the "dust to settle", especially if a bunch of forclosures are involved, and there really is some people out ther with legitimate rights to stock certificates (overhang). It could easily take a year for all the smooke to clear, in which case there would probably be only a few shareholders remaining - making any liquidation or merger much easier.
I agree with the guy who says this stock is headed down further, and if you're a gambler (not an investor), the odds of ever getting anything are going to get better in the coming months.
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