Replies to post #5732 on Patriot Coal Corporation (fka PCXCQ)

[sambeaux]

You said: "There isn't many existing
holders right now.. "
Well there might be Gates and Buffett
if they were telling the truth about
holding PCX stock (at high purchase
prices).
They do not like to lose money.
And heck.. maybe we will see our
first honest and honorable hedge
fund that DOES NOT steal our hard earned
and bought and paid for PCX stock.
Or offsets our stock with shares of the
new stock.
PS
What the heck does,
"backstopping a rights offering of new equity"
mean?
"backstopping":
Definition of 'Back Stop'
The act of providing last-resort support or security in a securities offering for the unsubscribed portion of shares. A company will try and raise capital through an issuance and to guarantee the amount received through the issue, the company will get a back stop from an underwriter or major shareholder to buy any of the unsubscribed shares.
Investopedia Says
Investopedia explains 'Back Stop'
For example, in a rights offering you might hear "ABC Company will provide a 100% back stop of up to $100 million for any un-subscribed portion of the XYZ Company rights offering." If XYZ is trying to raise $200 million but only raises $100 million through investors then ABC Company will purchase the remainder.