" My concern is that the market will deteriorate even further. But, I remain bullish in the long-term due to the assets of Chatham and the strong management that exists. " groaning...keep paddling..we're in the same boat..no..canoe
I picked up shares under 10.00 but my break even is in the 14's. I will buy more shs with the divs when they come.
Ya think they want to renegotiate the deal lower?
I know that the next quarter or two's results are key to growing the share price and dividends. I am surprised that no insider buying has occurred at these fire sale prices. I'm guessing (wishing) that there is an announcement coming that inside buying would've broken the rules.
I do recall the hint about increasing the dividend. It would be nice and it might even raise the share price.
Your probably right about the insider trading issue. I am not up to speed on the rules, but I would imagine that management is waiting on sidelines for a nice piece of the undervalued pie.
From my understanding of the contract and the way it was written, the MAC clause is pretty broad. This broadness will give Cerberus/Chatham negotiating power. Does this mean they will be successful in lowering the price of the deal? The further down the road we go I am sure that creditors are beginning to itch more and more for any type of return on their investment in Innkeepers.
This gives them a lot of power to maneuver through negotiations. Now, I doubt they will get a much lower price, but even a mid-to-upper single digit % decrease in the overall purchase price would really be nice for both Cerberus and Chatham.
In any case, I would imagine that the lawyers are pouring over the paperwork right now. Innkeepers has to find a buyer or somehow escape bankruptcy. However, finding the credit for such a transaction with the market the way it is might be the hardest part.