Preferreds Still worth More Than The Entire Company
Until they find a way to build a book value that exceeds the 50 to 75 Million required to retire this obligation, they are doomed to mediocrity. Preferreds are moving up and suits have not been dismissed. With earnings of 20 cents per quarter, max stock price with normal financial PE of 10 equals $8 after 75 million book achieved. It will go lower from here.
They don't have earnings of 20 cents per quarter. The operating earnings - excluding the non cash charges - are around $6/year. A share price of $8 is PE of 1.3 against a likely long term run rate. That's a truly stupid valuation.
operating earnings are not earnings, they account for all sorts of mis haps and this company has a lot of them, In addition if the preferreds are truely worthless as you contend, why does the shareholder equity conti=nue to fall as they increse in price. Oh wait, I will answer that for you. they are being accounted for at the lower market price instead of the true cost of the financial obligation. i do beleive the company will survive, but with a 600% gain on my pfd shares, I have to laugh at the absurdity that the common is worth something before the preferreds.