It seems SCEI is getting out of the slurry business.
Will Seiden (Robin Hood) and his merry men (Sutter et al), distribute proceeds from final production, or will they line their pockets with whatever scraps and crumbs they can pick up?
Has chairman Sutter found a girlfriend in Shanghai, or perhaps in Dongguan? Maybe he makes love to her behind the locked doors of the bk forfeited factory. The paper factory sharing the seized lot emits an odor, so no one would know.
Anyway, now that SCEI has announced they are following the leadership of mother China, Sutter seems likely to have far less direct responsibility. He can enjoy his time in the Middle Kingdom.
Should be fun to see his announcement after just a little more time:
Sorry. We shut it down. The company has nothing but bad debt and undelivered coal. I'm liquidating everything, but after payments to me, Seiden and the group, SCEI will be a valueless shell. We will work to eliminate the obligations through bankruptcy, and then put the shell on the market for $20k or so.
This seems to say:
1. Remember our last report, where we said it is too hard to compete against local slurry garages? We meant it, and now other fuel prices are down, so we have gone out of business.
2. Foreign investors don trust us, so we can't get any money.
3. The government, in all her communistic glory, is guiding us now. We will do whatever mother China wants.
4. Have a GREAT day.
Anything I missed?
Stocks always run up and down more than I anticipate. Would not be surprised at $2.25.
They haven't announced their earnings date. It seems like they've pushed it out, and the IR folks have said that it will not be 3/4. I think it is good to push it out, as each day they are farther into repayment, and disposal of assets.
Keep in touch.
It is worse than selling your cars to make a mortgage payment. It is like selling your honda civic delivery vehicle to make a payment on your pizza delivery business. You get to keep the pizza ovens and hope for walk in customers.
The financials aren't really interesting for FXCM. The only thing that is interesting is the platform.
That said, the numbers don't seem to add up to the right answer, right? There is a bit more to the story.
The loan could be discharged in a bk. all shareholders gone, and the platform picked up for pennies. But if that is going to be the outcome, it seems like the internal talent (and, yes, there is some good talent at FXCM) would have moved on instead of seeing their stock options destroyed. The business would be quickly cratering. There would be no need for an earnings report because bk would be here or in process.
What would bk mean for LUK? It means a complete restructure of the cherry deal they made. Maybe they buy the scraps in bk, but it is pretty ugly to go down that path. I don't think Drew is interested in losing his entire interest and being a CEO with no shares in a company he built.
We shall see how it plays out.
Let's BBQ sometime.
So, your $2.20 stop-buy didn't execute this morning? Or did you get short there?
Will chairman Sutter celebrate by obtaining a pink slip in China for the scei slurry delivery trucks in his own name?? Or, has he elected bankruptcy and liquidation in order to pay professional fees to Seiden et al?
How would the chairman's name appear on a Chinese pink slip? How do you spell Sutter in Chinese?
So, you lost 5% of your money from $2, and now you are willing to lose another 5%.
Nice move, btw.
"...the company will be selling its two HFT assets, its stake in FastMatch, and a variety of other smaller institutional businesses..."
He said this on Monday. Tuesday, $1.97 took plenty of hits, but there were no real sellers.
Today, well, look.
I couldn't be short overnight on something like this.
watching this for you. Signal coming....you are buying at $2.10, right?
I think you will find that it closes around $2.04, $2.07 and then one day there will be a press release and it will open at $2.25 only to slip back to $2.18 on the close.
That's got chimpanzees...
Tell me on a Sunday
Don't write a letter, no big song and dance.
The cost of coal in china is up in the last couple of weeks. Diesel too, just like the rest of the world. How do you think these prices and competitive elements will impact this quarters performance in the Chinese energy sector?
Tell me Sunday.