The latest report out indicates that there will be no liquidation and the company will continue. This is what I was hoping for, as revenues have been rising and there is perceived value in this company within its target demographic. Debt for equity swap will dilute current shareholders, but that will not happen for a while, as their debt is not due for a long while. But, the clincher is that the current stock price is what you typically see in a liquidation BK, and that does not appear to be the case here.
All my rambling aside, I have no idea what will happen tomorrow. The market is one big roulette wheel.
Exactly. PSUN could put out a single PR and we could run to .50 and $1.00 with ease! People are panic selling on a rumor. The company never ever responded to that rumor.
Sentiment: Strong Buy
There will be no bids / buyout for the company. There is nothing to buy. The common shares are worthless. The bondholders and the debt holders will own the company. And they still will not recover 100% of what they are owed.
I agree. 1 article by a known short rag and people are falling for pre market garbage. I was in a similar big board stock a couple weeks back they did the exact same thing to and the company replied with good news and it ran from lower levels than this to almost $2.00 fast. There are shorts all over PSUN. I will be loading up on any fear. As for any indides selling on the 31 that was normal end of quarter selling of options. insiders still own most of the OS!
Sentiment: Strong Buy
Withholding of shares by the issuer to satisfy tax withholding obligations in connection with the vesting of a restricted stock award.
you better read the fine print from now on.
Seems pretty obvious what they are doing is buying companies by bankruptcy. Make a small loan to the company, run the company to zero and that the company for the turnaround after debt holders take control.
Most sources of this news are from Bloomberg. If you don't take Bloomberg seriously, then you haven't been in this game long enough.
The BK news list very clear that this company still have value in it. .05 or 06 is too low. Remember radio shack that after file BK drop to .07 and in couple days go back up to .20 and then .30.. you might see the samething.
We'll see. I don't own any shares, and I don't plan on it. Watching from the sidelines, because if they do in fact file Chapter 11 today, then what you said would happen (new shares) is almost a certainty. Bondholders have first claim to any assets. After that the company may need to make payments for taxes, employees, trustees, etc. Then comes preferred equity holders, and, finally, the common equity holders. It's unlikely that shareholders receive anything, and if they issue new stock, it's usually a form of payment to debt holders.
It eliminates the obligation and duty to shareholders. It gives ownership to the debt investor. The present "insider shares" will be wiped out, along with all the others; however, it's very likely the management/insiders get new stock or payouts that are equivalent to the gains if they owned stock.
Delisting doesn't mean much, except that bid-ask spreads will likely increase, which will bring the volume down a bit. The cancellation of common shares is the nail in the coffin. There was a chance the commons would be protected, since insiders owned a lot of the shares, and they might have wanted to protect their own interests on the way out. Besides which, the debt levels didn't seem that horrible at the time. When they stated their debt was from $100m to $500m in the BK filing, I knew it was over. With that much uncertainty, the shareholders had no chance of recovering anything from the financiers.