IAR will seek BK protection as it tries to reorganize. Stock will be traded on the pink sheets until (if) they are able to emerge from BK. Stock will trade between 5-10 cents a share for at least the next 18 months. Although no major layoffs are expected, there will be a RIF, probably around 10 percent. Shame that VZ saddled IAR with so much debt. It was a spin-off that was destined to fail and VZ knew it. I expect several lawsuits will be filed by IAR shareholders against VZ within the next several weeks.
IAR does appear on the path to BK but I can't see it happening as soon as next week as some say.
As someone else said creditors not stockholders force the issue in most cases (LEH comes to mind where the BOD did it in advance of creditors to protect as much shareholder value as they could)
The price action of the stock shows that money is pouring out just about as fast as possible. This is a big red flag along with the draw downs of credit lines (another HUGE flag).
I bought the stock around 1.16ish and sold around 1.08ish to as my stop loss kicked in. I was looking at shorting around.99ish because normally when a stock goes under a dollar it doesn't come back.
The best way I can see to make money is to short on upward movements in price with the idea of keeping a small stop loss and seeing if IAR does go BK (which will put the stock at about 2-5 cents)
If you own it? Hard to say at this point. The best money would be to sell on upwards but at this price its like a never ending option. either way you should have a VERY small position to the size of your overall portfolio. Remember - stop losses cost money just like insurance, but they save you from those huge game changing losses.
Doesn't guru seem a little worked up about not being effective in convincing the longs to sell their stock so cheaply? It makes you wonder why he takes our interest at heart especially if he is in the same boat owning IAR shares. Maybe he thinks speaking negatively on this board will drive the price down even further - you could buy a lot of shares with a few thousand dollars if the price was at say $.10 but only in theory, because there would likely be a storm of buyers competing for the few sellers that would be around (remember the shorts that need to cover).
I was too. Luckily they cashed us out a a much better rate. I bought back in and am looking forward to positive results of recent changes. What others don't realize is that there's not much they can claim, until the books publish (hit the streets). I think we'll see that in the 1st qtr w/major books hitting the street. I will be buying more as I can at these rates.
I don't understand how those that are "warning/protecting us" from losing our $$, are even interested and commenting here. They should just go away and leave us to our bad/good decisions, if they truly see this in the grave.
I would believe posting such misinformation is highly illegal.
Also, how do you relate this post to your prior posts below:
10-6-08: “Just picked up another 150,000 shares. Average price now is $1.37. I now hold 385,000 shares. My hope is to see $3.00 by the end of the year, for a quick half-million dollar profit.”
10-3-08: “If the price drops to 50 cents I may just buy the whole company. For $75 million and the assumption of debt, I could fire 90% of the workers, default on the loans in the next few months, and pocket about $300 million in...”
You're a fukking moron. Message boards are precisely for posting opinions. If you don't like my opinion (definitive as you believe it to be), don't read it. The only thing illegal is that swomeone with a pea-brain like you has acess to a computer. Yes, I own a ton of this stock. But I think they will have to file for BK to restructure their debt and operations. Look at the price of the stock. Do you think I'm alone in that opinion? Look at the fact that they are facing being delisted from the NYSE absent a reverse split, which is most certainly a death knell to any company. Face it, bud. This company will have to reorganize to survive, and BK is the ONLY solution.
Glad you nailed him on those posts
I actually posted a question right after those posts to see if there was a way to veryfy such outrageous claims of that many shares being bought.