I doubt they'll do a press release, especially if
they're buying back LLC's bonds or buying stock to prop
up the price. This is not a company that seems to
keep the public informed about their business unless
they have to.
The bonds I own (and I suspect Easternave owns)
are listed on the NYSE bond market. There are two
different issues on sale to the public, some coming due in
2004 and some in 2006. However, often bonds change
hands and the transaction is not registered with an
exchange. Also, the LLC bonds are not listed on an
CPS's press release states "The effectuation of any
further purchases of outstanding securities
depend, among other factors, on the prices prevailing in
the markets for such securities. Should
prices materially exceed those that have prevailed in
recent months, the company may decline to
outstanding securities (other than $1 million of debt as to
which the company is committed)."
This leads me
to suspect that the only way they would be buying
stock is to prop up the price. After all, the Bradleys
and LLC own more than a third of all common stock, so
they don'ta want to see the price drop. But they seem
to be saying that if the price goes up, the company
will not redeem any stocks.
Easternave, I guess
I somewhat of a cynic, but I think if they have to
decide whether to redeem my 11% bonds at 74 or LLC's 14
1/2% bonds at 100, they'll take care of their friends
and take a mimimal loss.
East, Is ther a way to find out out if bonds were
bought on that day by seeing some kind of volume, like
if someone bought 300,000 shares of stock we would
know right then.
Sponge, great post, very good
points. You are 100% correct with the 5 million
per/month. As long as things keep getting better that is
what is important.
With the buy back book value will go up
substantially. The market seems to be ignoring that stock holder
equity is 70 mill on 20 mill shares is roughly $3.50.
Even with losses we should show a better price per