The bid/ask has been $7.40 to $7.70 for about an hour now. In the last 5 minutes there has been at least three large blocks with every single share going for $8.00 to the tune of just under 120,000 shares......now 100 shares just crossed at $7.40. This morning the bid was $7.00 and when the MM stole all he could he raised the bid. If there are more sellers than buyers the bid should go down not up. This guy is taking out all the weak hands. Once the supply of small holders is gone this will pop. DaninFW
They filed bankruptcy after market close 12-22-11. I have read all the 38 court filings. It should get interesting. Over 90% of their creditors wanted to renew their revolving credit of almost $400 million but the new covenants required 100%. Business has actually been dramatically improving. They should hit over $100 million EBITDA this current year ending 12-31-11. This play now looks like the Cooper Standard bankruptcy where I bought the bonds for 18 cents on the dollar in bankruptcy and got around 105 average for them about 2 weeks before they exited. Made almost 6 times my money. If I had taken the stock instead of cashing out I would have gotten about double that 6 months later. I won't do all the math here but these assets will continue to appreciate in bankruptcy and company will ultimately be owned by bondholders IMVHO.......I need to see more financial data in next few weeks but I suspect these bonds selling for 20 cents+/- on the dollar may dip in next week or so......but 6 months from now be worth several times that. DaninFW
Both warrants expire in 7 years. The SEC filings said warrants should start trading 2-3 weeks after the stock.The warrant strike prices are $22.69 for class a and $26.68 for class b.....way out of the money currently. I still believe we will see $15+/- by year end for the stock which should give some value for the warrants. Don't expect much till we get to that price. DaninFW
This is why a lot of people won't buy stocks that trade on OTC BB.
Maybe once this stock moves to a "real" exchange, this will be less of an issue, however as long as it's market cap stays this low, it is not likely to attract the interest of many institutions and thus as a thinly traded stock it volatility will remain high.
I agree. I actually posted a message several days ago about these stocks usually moving up nicely like COSH, SIX, GGC just to mention three once they get off the online bulletin. Short term this could be $5 or $15. I am tempted to go fishing at under $7 but I have patience to average down my cost even more. I would like to buy a large block at $6 or under. Remember, last quarter if you go back and look at the 10Q USCR actually made money if you backed out the bankruptcy charges. This quarter will also have a lot of garbage good and bad. We won't get a real picture till Jan/Feb when the quarter ending 12-31-10 is released. They have gotten out of many liabilities mainly the Superior deal and dramatically reduced interest charges by at least $14-15 million a year. With 11.9 million shares outstanding that's over $1 per share just in interest savings. This is not the same company that went into bankruptcy. They are lean and mean. Unfortunately, they have the same management team except for new CFO. DaninFW