I am not sure if the article you quote included transaction costs, prepayment penalties, legal costs for BK, franchise breakage, etc. These costs all add up and the lawyers ALWAYS get paid. When you account for such costs and other payments to unsecured creditors, there could be NOTHING left for the common. Don't think that at $2 per share you have a cushion. More likely, the equity is worth zero.
Question: Why would C's get full value? I understand they are all now owned by a large player but usually such preferreds are subordinate to the letters coming before. (simplistic assumption I know, but just asking).
Seeking Alpha stated in their syno[sis "now if Supertel was not successful in their rights offering and continued to have significant liquidity difficulties, then bankruptcy would follow. According to our back of the hand liquidation valuation, found below, we see that roughly $43 million would be left after selling assets and extinguishing all debt. $46 million would be necessary to liquidate all preferreds at their liquidation preference so even if C shares received full liquidation preference before either A or B shares, then A and B shares would get 19% reductions to the liquidation preference ($3 million total deficit 1.5/8= 18.75% discount). The shares currently trade at larger than 30% discounts to liquidation preference which gives investors now a margin of safety even in liquidation". Hopefully, things will work out. Perhaps egos should give way and a turn around management be brought in. The ford family did that and look how well Ford did.
Hard to say, it depends on how successful the offering is.
I think the current PPS is below the offering.
The tried this before and failed badly (115 Mill offereing).
I sure hope they are successful, one they re-instate the preferred Dividend, the PPS should go up.
I almost feel illiterate asking this but what did you guys take from that article? Are they saying there is an upcoming stock offering planned? If so I would imagine the price going down temporarily before going up? In my short experience in stocks every time there is an offering the price is typically lower than the current market pps. Also what's up with that little graph/chart towards the end? Are they projecting an $8 price target? If so how quickly could we see that?
As long as it did not go in BK, you would get a chance to vote on it.
If the PPS 3.29 you win, else you lose.
I would think, that the PPS would be above 3.29 IF IT HAPPENS
If a "buyout" did occur what would that do to the stock? Would it be good for us? I've never invested outside of biotech's, I noticed this stock going up on no news and I figured a few hundred bucks (100) shares was worth a quick/fun gamble. Now I'm wondering if I'll get my 3.29pps back, lol.
Wow! 1.3M common stock shares have been transacted in the past 4 days out of 2.9M outstanding.
Zacks dropped coverage on 1/24;Thomas Reuters downgraded SPPR yesterday from hold to sell; stock doubles in price in past few days. Now an unsubstaniated buyout rumor. They do have a debt problem to solve this quarter - can they make it? No insider or institutional buying (or selling). Interesting, huh?
That makes sense. Now that they have enough of the common to block a buyout they can quit buying. But shouldn't an offer of a $30M buyout be publicly announced? Lots of action with no public announcements.
Strategic Global Investments, Inc. Finalizes Agreement to Purchase Bearpot, Inc.; Controlling Company of Colorado Marijuana Cultivation Facility
Company Acquires Bearpot Inc., to Function as Wholly Owned Subsidiary and Incubator for the Development of All Canadian and Domestic Marijuana Projects
CARLSBAD, CA, Feb 20, 2014 (Marketwired via COMTEX) -- Strategic Global Investments, Inc. (otc pink:STBV) is pleased to announce that the Company has completed negotiations, and has signed an agreement for the purchase of Bearpot, Inc., controlling entity of an existing Marijuana Growing facility located in Teller County, Colorado.
As a subsidiary of Strategic Global Inc., Bearpot, Inc. will function as the marijuana incubation and development sector of the Company. The transaction brings existing equipment and inventory; creating a successful model that the Company can duplicate as legalization continues to spread and markets continue to open nationwide and in Canada.
As recently announced Strategic Global's plan of action is to expand and renovate the cultivation process with new state-of-the-art equipment in an effort to capitalize on the recent legalization and resulting high demand of cannabis in the state of Colorado.
"We are very excited to have the platform for this sector in place. It is important that as we enter this marketplace, that all factors are considered to ensure a proper entrance. Our plans underway currently involve an active search for compatible Marijuana related businesses in Canada and the US," stated Andrew Fellner, President/CEO of Strategic Global Investments.
The Company has evaluated the industry and expects to be able to yield a harvest and generate revenues from the sale of plants by the 4th Quarter of this year. Colorado began allowing the sale of recreational marijuana on January 1; consequently the Company will be set to market quality product to an already existing client base as well as new clients. Due to recent relaxation of regula