Only 155K shares as of 3/8/00. Of course activity
could have picked up in the last couple of
Could you please explain the strategy behind shorting
ahead of the rights offering. I believe I understand
it, but if it's as I think it is, the risk/reward at
these prices would be quite unfavorable.
PL is not proposing to inject a nickel, except as
a shareholder and/or as a backstop. PL proposes
that we shareholders inject capital.
believe that BK is impossible, then PZN is a steal at
these levels. I have stated clearly that I think BK is
unlikely and that I am currently holding PZN. However,
given the surprises we have already experienced, it
would be foolish to believe PZN BK is impossible.
I am not a BK lawyer, but I do think there is a
considerable risk to shareholders if PZN goes chapter 11. You
mentioned CMM. They declared bankruptcy in early October
1998. Looking at their stock price history, it appears
to me that at that time CMM dropped from over $10 to
between $1 and $2, before recovering a bit and then
slowly sliding back to the $1.5 range that it is at now.
There may be life after BK for common shareholders, but
it is almost always worse than life before BK. I
hang onto PZN because I doubt it will go BK. If it
does, I expect to lose money.
It is very kind of you to remind me that you lost
money in PZN.
I happen to know that all successful
man fails once a while,
although always and only
temporarily. I do wish you well on your CMM purchases.
I lost a lot of money on PZN, I not sure if I'm
the right guy to advise you. My advice is to listen
to the people who have been right all along. When
they say it's OK I'd listen. I, as many, have had a
real blind spot here.
Remember even the smallest of creditors can upset
I've presently been buying CMM
a bankrupt mortgage firm, they went bankrupt
because the creditors felt the collateral was not up to
snuff and asked them to add more. It was not a
situation they could not pay their interest payments. Look
at Texaco that went bankrupt, etc..In some cases
it's just a pause. Creditors seem to have less say, so
I'm told. BK judges don't want people through out of
work constantly because of pissed off
But I'm sure others could comment more completely
I agree with everything you have said, except the
statement that PZN shareholders will do fine over a 5 year
horizon even if PZN goes into bankruptcy. I think it is
very unlikely that PZN shareholders would do fine,
even from these levels, if bankruptcy were to occur.
BK would imply that the situation is much worse than
we have been told, for whatever reason. It would not
be possible to liquidate the company for anything
remotely close to book value. If that were possible, a
deal better than even PL's would have already been