I'm pretty sure that June 10th was the day we find out if they're in breech of their loan covenant with JPM.
They mentioned they were seeking "strategic alternatives" in the last C.C., and hired GS to handle it (possible share offering.)
They have a new, interim CEO.
They DON'T have a CFO at the moment.
I can think of many reasons why this is going down. What I can't understand is how it just KEEPS going down and down. It's rare that you see a stock not have one single up day in over a month and a half. Especially one with such a relatively low float. The more it goes down, the more reasons there are for it to go down. It's a self-perpetuating viscous circle. The stock has to go up - soon - or they're going to end up below required capital levels. What I can't understand is management's silence throughout this bloodbath. It's as if they're actively involved in the destruction of their stock.
The only thing I can think of is that the underwriters for the offering last fall are now shorting it. What happens is that the firm that handled the offering would be called upon to naked short it for the institutional investors that bought in. If you read the prospectus, you'll find that it's standard boilerplate/legal-ese: the underwriters have the right to create a short position by selling more shares than were allocated for the offering (naked shorting.)
But - goddamn - enough's enough already. They have to cover sooner or later.
Ugh technically UWBK is already in default with JPM, they deferred the last interest payment on the 30 million dollar revolving credit line, and I might add JPM is holding all the shares of the bank as collateral on the credit line.
Also the OTS gave UWBK until June 1'st I believe it was to up their capital ratios to 8% and 12%
Nice post.. was thinking similar thoughts on underwriter shorting. Its a practice whose only analogy I can think of would be allowing the banker who finances a loan for a store, to be able to come in and loot the place at will for a period of time.