I think the 3.5 billion dollar deal has prepa interested but they will need to secure more capital from the credit market to close the deal. Bondholders might move to loan more money in my opinion. This could be great for mbi if more bonds need to be wrapped. People need to look at the big picture Prepa is a monopoly. There is still plenty of room for cash flow.
Any ideas on if a new stock buyback could be put in place? Share count could be down by 20 to 25 million shares putting shares outstanding at 156 to 161 million book value should look great if operations produce a good profit
How can management stand back and do nothing to ensure shareholders of the kind of operation they are running here. I find it funny Warburg's proxy director leaves as they pull off a possible manipulation game on the price of the stock. Someones pockets are being filled full but its not the small time investor out there. Where is the SEC and the lawyers that could step in. My words to management is to stop the good old boy system and answer to all shareholders equally. The reason I say this is because the repurchase of the stock at 8.73 doesn't add up. Things could be on up and up and this is just market forces but the timing of share repurchases seems odd. I'm still long the stock but it seems there is something big being played out and I would warn brokers and short investors that a massive move in the stock price to the upside is very possible.
Can the company come up with more cash to buy more shares back? Management owes it to long term investors after the years of bad buybacks. At these prices they need to have two missions expand national at good margin rates (wait for rate increase at fed level) and buying as much stock back as possible.