I read the GY 4Q 8-K and the results were excellent, certainly better than expected. Then why did the stock bounce and then retrace? After these great financials, the stock should have spiked over $6 and stayed there. I bought more @ $5.75. Any thoughts??
My guess is they sold the convert issue to some nasty hedge funds that have been shorting the stock since they are now hedged by owning the convert. It would have been less dilutive to issue straight equity to investors that liked the company, but investment bankers sell converts like ice to eskimos.
Re: "My guess is they sold the convert issue to some nasty hedge funds that have been shorting the stock since they are now hedged by owning the convert."
Well, the convertible debentures are set to convert @ $9.00/share. If these funds are now shorting down in the $5-$6 range, how is that a hedge? If the stock moves back up toward the conversion price, they will have to cover the short for a big loss. Please explain your rationale? Thanks.
BTW -- I bought more today @ $4.55. It still looks like a gift for the patient investor.
Earnings are one thing and money about Retirement is another thing. Money about Retirement should have been known way before the earnings. This should not be a surprise to all the money manager. Usually a company can announce it in separate filing withe SEC. So let us not confuse earmings with other things. I think stock is going to bounce like anything you have not seen yet. Watch it.
*** The Company estimates that retirement benefit expense will be approximately $42 million in 2010 compared to income of $11.9 million in 2009.
** The Company expects to report a significant increase in non-cash interest expense beginning in the first quarter of 2010 because this guidance requires interest to include both the current period's amortization of the debt discount and the instrument's coupon interest.
** Q1'10 and FY10 earning report for GY doesnt look good base on comments above.