If I was looking for an entry point for this stock, I would buy in the next 2 weeks. That's when it will hit a low in the .30 - .40 range. It will rebound slightly but don't look for a short term hit. It will take a miracle to ever see the 2 dollar range again (or a good rumor).I will be selling out upon hitting the $2 mark as I have seen enough here & realize the bond holders are absolute morons. I hope they are enjoying their holiday gift of losing most of their value in this company due to stubbornness beyond belief.
Acceleration on the part of the banks (and bankruptcy) usually results when the banks perceive there is less going concern value, than there would be in taking control of the assets. With the continuing UPWARD trend in radio revenues, and the fact that EMMS should, I think (although I haven't studied it in detail) have no trouble making its debt service requirements, and the fact that, in my view, Mr. Smulyan has "juice" (important powerful connections), I just don't see financing agents totally walking away here. Do not forget that he just almost bought out the company for $2.40. And he was WILLING and DESIRING to. Is the company really worth any LESS now, a few months later? Part of the basis for the suit of Alden is arguing, I believe, that Alden was reckless and evidenced bad faith in walking away, because EMMS prospects materially IMPROVED since the deal was announced. So, while there is certainly long term risk here, I think now is the time to be buying the stock. Sure, maybe it's zero, 3 years from now. But between now and then, and the very least, I think we'll see $1-2, sometime in 2011.