There is absolutely no reason this firm is likely a buy-out candidate because its forward value is in the $1b tax loss carry-forward. You can not buy tax loss carry-forwards. ANd they didn't do all this work over the last 4-5 years to sell at $8. THey are shooting for big numbers I assume many years down the road.
It is a highly leveraged firm which means a lot of potential upside off its equity base. They are not reducing debt, they are attempting to grow back into a normal debt to equity balance. Debt is roughly the same as 12 months ago.
Because of the high leverage, the best way to play this one is long term cheap options. If they hit it big you'll be a big winner. Otherwise you limit your loss to what you put up.
Never hurts to lock in profits...Days like today happen rarely especially with markets tanking. This was a HUGE uptick in flat to up markets...and off the charts on a down market day. You rarely, if ever see this kind of action.