is it just short sellers covering their short position? That's what I figure but am very new to this company so I don't know all the details....Is the common stock slated to be wiped out? Any insight would be appreciated.
XIDE has NOT announced BK. It has invoked protection otherwise known as extra time. It is another Chapter that invokes BK --- a number greater than 6 and less than 8. All we need is validation which is forthcoming. S/H impact is likely tolerable. It's all in the math, strategy, wine with a politician, and extra time. Good luck.
Shareholders of common stock get wiped out when all assets of the company are needed to pay creditors (e.g. bondholders) and nothing is left over. But it is not clear whether that will happen here--it is still possible that all creditors will be paid, and there will be assets or an operating company still existing. Book value (i.e., after subtracting debt) is about 200 million, or about $3 per share. XIDE has not defaulted--they have gone into voluntary Chapter 11 with liquidity, and now with new financing, and with no defaults. Conceivably they will come out of Chapter 11 with the stock still valuable. See American Airlines for a recent case where all creditors got paid, and the stock was still valuable afterwards.
Book value per their 10K (posted on Edgar) is $152M, or $1.94 per share as of 31 March 2013, but Goodwill is about the same amount and they have probably been bleeding cash at about the same rate since 31 March as before 31 March (about $850K per day of operation).
A question - is a share bought on the Nasdaq exchange the same as a share bought on a foreign exchange?
i think it had to do with releasing their earnings where peopel are saying a lot of liquidity there thats greater than its debt. i think thats the only thing thats really changed.
i just read about the Vernon plant and it seems they're still in community meetings with locals while Exide challenges the DTSC ruling. i get the impression Vernon will eventually open up since even the DTSC has acknowledged the need for them to be recycling batteries, and the other thing is the DTSC seems liable for allowing Vernon to be emitting toxic substances which was reported 2 years ago as well. So Exide arent the only ones in the crosshairs of the community.
i just don't really understand the bankruptcy stuff. especially with the foreign Exide subsidiaries not being a part of BK, or how the cojmmon stock will be affected in this chapter 11 in the longrun.
Correct. Shorts will buy now to cover and stand to make a lot more as it tumbles. Once the BK happens, the stock will move to over the counter. These runups are common with BK companies as the last of the shareholders try to make as much money as they can before its gone. Some bet on the stock not being wiped out, but 9 times out of 10 they do. Sometimes companies offer rights to original shareholders to buy the new shares, but this isn't common. So unless you're a crazy gambler, you should stay out. The PPS is falling now and I can't imagine them ever recovering from here.