Your math does not apply in this situation. You have to add in forward loss, three part sale and the fact that this ship is sinking daily. If your going to use that math, you might want to adjust y our figures daily, you will be adjusting them right to $0
Ok, I am trying to figure out what we can get after all. Check company�website: http://www.twtr.com/phoenix.zhtml?c=80810&p=irol-fundHighlightsA end of 30/9/06 shareholders Equity was 68.16m. end of 31/3/07 (after 6 months) shareholders Equity was 34.54m. Means we lost average 5.6m per months. Let assume the same loss for last 3 months (April, May, June/07), shareholders Equity would be around 17.74m. With 25.56m shares, 1 share would be worth for 0.69 Correct me if I am wrong. Thank!
lol, you are not serious are you? the book value includes about 91M of inventory which they will be lucky to get 60M for. It also includes about 70M of fixed assets which could lose much of its value when they start closing stores. For the months of April, May and June they have been losing money hand over foot. The second they declared BK the value of the stock became worthless. It has been pointed out before, the book value of worldcom the day they stop trading was over $12.00 a share, the shareholders lost everything. These shares should be selling for under a penny, and will in a few days or weeks. Just like Enron or worldcom or others before them, some believe that a magic bullet will be found to save shareholder's equity. It aint going to happen. Within a few weeks they will stop trading and shareholders will lose eyerything.
Very true and the first 60 ml, goes to GE, so where is the value at? If your going to play this thing, you will have to short it all the way to zero, because that is where its headed, but you can still make money.
Take a good look at delphi. An upside down balance sheet, loosing 700 mil a year and OOPPPS,a bidding war coming for the company at about 5 bucks a share.Go short Fedders. Now those guys are getting back zilch when they file.