I don't think they will go into Chapter 11, remember they were offered $400 million for the half of the Mexico operations they own, so they don't lack options for raising cash if needed. Private could be an option as long as there is money available for the buying firm to use. This thing is going to continue at the same level $1.50 to $4 range until next summer, when finally they will decide a change at the top is needed. I think they are going to announce what they believe are big changes at earnings, but will amount to a whimper after everything is said an done.
It is interesting to note that the market cap is lower than inventory and accounts rec. combined.
I agree with you about your Chapter 11 comment. OD will not go bankrupt. I also agree with your trading range for this stock for the next 12 months. No matter how many people bash this stock, the price is not refleting the true value of the company. There is a big disconnect here.
I will say this is a politicly correct way.. There is a skunk in the woodpile.. to say the least.. When someone denegrades a stock under 2 dollars you bet your sweet ass there is an underhanded/shady reason.. Kick em when they are down ,comes to mind. I'm in until the Jan call expiration.. I had intended, going in, to maybe dollar cost average, but the way this stock has made nothing but a death spiral and the management having the ~now~ huge advantage of stealing the company.. I think I'll stay and piss and moan. VENT The fact that we are in relativly cheap is fine but I really feel for those that have been investing in this company for some time,, did you se where they are tryin to blame Greenspan for all of this... I never liked the guy, ever, but !!!come on now..
I have yet to see any brokers jumping out of windows or CEOS doing the same.. There are a lot of people losing there homes tho..I might add I hope not to but I want to see someone in the clink for this mess.
I saw a segment on the people who are cleaning up after the foreclosures in California.. What a shame.. EVERYTHING LEFT GOES IN THE DUMP>> go to PBS.ORG to see it..
Ask yourself the following question: what could cause a profitable company to go chapter 11
The only answer I can come up with is having too much debt. I recommend you look at the company's 10-k for the debt payment schedule and also factor in that their line was just increased by 500million I believe (which covers their current debt obligation by ~2X).
If you can explain to me WTF is going on I would be appreciative, because right now I am clueless and the market isn't making any sense