I'm not. I think the price will remain in a tight range below the $5.00 level for the duration of the rights offering period. The only real question is what will they (Ross & the boys) pay for the remaining shares after they've taken the 54 million from the offering???? Should be a very low risk buy below 5. You either make pennies or perhaps a buck or two if you're lucky. Either way the downside appears to be safe, and that's saying a lot where this POS is concerned.
I would expect a rise on the closing. You will have to price the shares sub $5 before dilution then price them after dilution. My experience is the dealer shorts or GS, pushes the stock at least 25 to 35% down from its true value, that short position ensures they never lose. The current stock holders always take the hit.
Ross ans watsa end up buying up most of offering. Stock drifts lower to 3-4. They then offer 5 for all remaining shares. Why does this work? A. They offer a decent premium. B. They have proof that 5 is more than fair
Could you explain your post: The only real question is what will they (Ross & the boys) pay for the remaining shares after they've taken the 54 million from the offering???? Where do you get the 54 number sir? Thanks.
215 million shares in float X .25 (the rights offering multiple) = 54 million new shares. Who in their right mind would exercise to buy at $5.00 if the PPS is trading below? Someone who wants 54 million shares easily, that's who. I have said, and I maintain, Ross and his cohorts will exercise their rights and those of all the common folk who don't. This will give them mucho leverage if they attempt to tender for 'our' shares in order to take the company private. That's it in a nutshell. Just some crazy musings on my part but the pieces sure do seem to fit.