I actually saw the MLNK ticker on CNBC at around 4:10 PM, I thought that there was something up, but no dice. I think that is the first time I have seen the MLNK ticker in years on tv
WPWR How many boards do you put this ON you start mlnk and nvda brcd.
all555, you know all this because.....
oh yes, you mustn't be on this board very long, based on your comments and self-righteous attitude
PS your not needed or wanted here, crawl back into your hole
Sentiment: Strong Sell
nice thoughts but not as certain as you. this shows me that the street still doesn't have much confidence in this company & its stock and its future success. however, hope I'm wrong - been holding this puppy for a very long time
The latest short interest report came out last night, and it appears that the jump in MLNK short selling may be leveling off. There were 7,320,933 MLNK shares sold short as of 6/30/2014. This compares to the 7,361,924 shares short as of the last report of 6/13/2014. As I've stated several times before, I believe that the large increase in short interest was due to the convertible note issue. MLNK short interest was reported at 590,118 on March 14, and popped up to 3,620,999 just 2 weeks later (after the convert offering). 2 weeks after that report, short interest increased to 5,135,414 shares. Here's a list for the year to date:
Remember that there are less than 52M shares of MLNK outstanding, so the effect of 7.3M shares sold short is equivalent to a 14% dilution. Not to mention that MLNK trading volume is light enough that an increase in short selling of this amount likely put a great deal of pressure on the share price. Hopefully, this trend will now be reversed.
Good work #$%$....the 50 percent rule is the issue. Basically it means we can not be acquired or the NOLs are limited....but we can acquire other Companies....I think the Bond issue allowed them to get capital they needed right now and not break the NOL rule...there is a time frame to measure the "change in control" maybe three years so Steel can buy more once this window ends. As you point out, dilution would allow Steel to put in more dollars w/o increasing their percentage. But remember... what's best for them is to drive up the stock price because they are the largest shareholder not dilute their/our value.
Here's my take...no deal was in place when the bonds were issued as stated by MLNK. I think they had a good quarter and the time was right to raise some cash. Could not wait because the QE 4/30 is historically soft. I am sure they want a deal this year maybe more then one.
They cannot sit on this cash because its expensive so it needs to be put to good use...I am sure they are close to one or more opportunities. The latest change, to issue more shares, would make my think they have a bigger deal in the works...
What would be be a fair multiple for a large private company...9, 10, 12 times after tax earnings...lets say a Company has $50 million after tax and we pay $500 million (10 times)....now for us, we get $75 million because we save the taxes at 33.3 percent.
That's a $25 million tax benefit each year .... what were our earnings last quarter? Just the tax benefit! Found money...
The only thing holding this stock back is the execution risk...overpaying for a bad business. But Steel is good at this...see WHX Corp now Handy and Harmon.
Sentiment: Strong Buy
cpa, I've seen an SEC interpretation of the NOL rule (Section 382, I believe) which states something to the effect that if a large holder increases their holdings (I seem to remember by 50%), that would be considered a "change of control" and would affect their ability to utilize the NOLs. It occurs to me that IF the company issues more common shares under this filing, then the percentage of Steel Partners ownership stake in MLNK would actually decrease (theoretically enabling them to purchase more shares without exceeding whatever the guideline is).
Not sure if that is part of the plan here. The stock's price reaction to this latest shelf filing is very tame compared to the previous one, which makes me wonder.
I believe the next earnings report is due on or about Sep 9, at which point we might be able to gauge the impact of the loss of some business on the bottom line. I guess it's possible that management might act on an acquisition before that time as fedele suggests. I did find this clip in combing through their S-3 filing with the SEC (page3) :
Use of Proceeds
Unless otherwise indicated in any applicable prospectus supplement, the net proceeds from any sale of securities by us will be used for general corporate purposes, which may include potential acquisitions and other strategic business opportunities. No material acquisitions are probable at this time. If we decide to use the net proceeds from a particular offering of securities for a specific purpose other than as set forth above, we will describe that in the related prospectus supplement.
The phrase "No material acquisitions are probable at this time." seems to indicate that they aren't in the process of anything at present, but it's hard to get a read on how long "this time" might last.
why r u in ur high horses. The market is moving up while MLNK was moving down for several years. Let ppl vent their anger and frustration. Get real. This board is not ur private board. Leave silver alone.
Silver and Phyll
Let me see...you investment $30+ million in a Company, you call your friends to lend you $100 million, you have fifteen dollars a share in taxable loss benefits that can only be realized if you make money...and then you decide to just "pay yourself a bonus"...like that's going to get you a return on your investment?
Please get real or get lost...I hate to be rude but I am sick and tried of very stupid comments and spam on what was once a very good board...
And I quote those intelligent words of Phyll..."what the frig is going on"...maybe you are the guys gaming the stock price...good luck with that...