I'm curious about one thing though: If a company was going bankrupt, and their debt load will significantly decrease to ensure their survival, isn't it in their best interest to keep as many assets as they can - especially if they are profitable? Why look to sell Argentina and Chile at all?
Interesting that there is very little price movement considering the volume - Still hugging close to .60. I wonder if its legit volume or maybe reshuffling between funds in prearranged transactions. The only thing we know right now is that there are people who've become very convinced that something big is happening in the very near future (for good or bad).
Me too. Lost too much to quit now and in my opinion the risk/reward is too great to not risk it. Obviously company insiders don't agree because they haven't purchased a single share on the open market since way back months ago when it was over $6 a share, but to each their own.
Based on this past months' activity, If the sharp downward spiral continues at this trajectory, the stock may hit zero by June 19th (approx. 21 trading days from now), even without a formal declaration of BK. Since that's virtually impossible, at least this coming month will be better than the past one. I know it's not saying much.
i don't think management would have gotten so specific on the cc with the timing of the extension (well in advance of June 30th) and show such confidence in a deal getting done if they were going to use this as a convenient excuse to file Ch 11.
Only took a few minutes. Last night's news did absolutely nothing. Hoping for strong support at .50
Can't believe the market cap of the entire company ($10 Billion in sales) is now only $95 million. The rapid, relentless pace of the decline over the past two months pretty much seem to indicate that either BK or a massively diluting debt:equity swap is almost a sure thing. I liked what i heard in the cc, but don't like that none of the big boys are interested in dipping in now - even at a 55% discount to the price last month. In my mind I've almost written off the investment, but still hoping for a quick burst to $3 somehow so I can at least salvage something.
So far in May, including the earnings announcement date, average daily dollars traded on this stock was $2.4 million; continuing the declining trend.
Can't believe it lost 50% of it's market cap between April 3rd and today despite no negative news, just pure fear of another huge drop when earnings come out like what happened last quarter. The only two comforting factors are that 1. the volume was pretty low throughout the drop, so perhaps the institutions are ignoring the short term drop and just focusing on the long-term outlook (either a home run or strike out) 2. No matter how bad earnings are going to be on Monday, the subsequent drop won't even be half of what it was last quarter when it went down $1.43 on 2/28.
Yes, I've been long on the stock for the past few months. I would consider a bankruptcy announcement in lieu of earnings extremely remote given that Brazil is improving significantly and the Company can't reasonably say that they gave project accelerate enough of a chance to succeed in the past few months that they consider there to be no hope left. Combine that with the fact that they don't expect to have a cash crunch anytime soon, and I would consider a BK announcement now extremely unlikely.
I'm hoping that there's been a tangible turnaround and they're just waiting to see if it's legit before giving a potentially misleading forecast which may initiate a whole new string of lawsuits. Or, I guess another possibility is that the new auditors just need some extra time to familiarize themselves with the company's operations. Remember, they were just hired two months ago.
On a separate note, I could be wrong, but I think it's a great sign that another Big 4 firm picked them up. If bankruptcy were likely in the near future, I don't think a new big 4 firm would want to get involved in the mess and overall litigation.
Maybe that explains the recent drop in price.
It is possible that management is waiting to get a clearer outlook for 2Q guidance and given that the last report was only issued two months ago, they're trying to avoid reiterating the same forecast. But then again, if nothing improved within the past two months, that's obviously negative. There is also a remote possibility that they're in the middle of a deal and are hoping it gets executed within the next couple of weeks.