The EMMS daily chart looks especially promising. We'll know more next week when price drops back to test the support of $1.00.
It been a while back so the details are fuzzy, but the bankruptcy occurred around 2002 - 2003. The price drop from $28.00 to 0.50 was the day that trading resumed after the trading halt related to the bankruptcy. The former ticker symbol of KMart was KM which traded on the NYSE. Around a year after emerging from bankruptcy KMart was considered to be such an "economic powerhouse" that it was able to purchase Sears. The merged enterprise was renamed Sears Holding Company whose ticker symbol is now SHLD. The price after the merger climbed to around $160.00 per share but these days it's around $75.00.
David, I thought you had clarified your prior statement, but apparently not. When exactly did K-Mart's stock drop from $28 to 50 cents? You definitely implied that it was the day after the creditor filed involuntary BK proceedings against K-Mart. Please clarify how long it took to go from $28 to 50 cents. Thanks very much.
Not sure if your comment is aimed here, but I will respond. Maybe some out here dont understand this company as well as you, but the market decides what EMMS common is worth every trading day. If EMMS is as great as some claim, EMMS common stock will run if there is good news. There will be time to buy at that time and enjoy the years and years of success that EMMS will enjoy. Until then, EMMS is a trading vehicle at best. Why hold a questionable stock when the market is correcting anyway. No, I am not short.
It is certainly discouraging that after having access to the inner workings of EMMS, that they walked. That speaks volumes. Four years ago, many things were different. What was their capital structure at that time? The class actions was probably from a bunch of morons that don't understand any such questions. Aside from that, the common equity is just a small piece of the EMMS story. At this point, its an afterthought, and the market values it as such.
Regarding your statement that "(Emmis founder and CEO Jeff Smulyan) also discussed taking the company private and we all see where that went", Mr. Smulyan fully intended to take the company private for $2.40 but the hedge fund financing the transaction backed out when radio stocks (and the general market) nose-dived in August. Since that time, some prominent radio stocks (e.g. Entercom) are up over 100% from their mid-August lows. Interestingly, a number of Emmis shareholders filed a class-action lawsuit alleging that the $2.40 price was too LOW. There was some basis for this accusation, considering that Smulyan tried to take the company private four years ago for $15.25
Fortunately the three stations that Emmis is hoping to sell are in the top three U.S. radio markets. However, if you are not comfortable owing Emmis, I would strongly urge you to consider other investments.
OK. Take the Hubbard deal and get very very simple and say that they paid 30MM per station. Would 30MM x 3 stations help EMMS, would 50MM per station help? EMMS has a lot of assets that they probably paid too much for when they bought them, and now they are responsible for the debt. Bad timing.