Hey Sam - remember this post when RSH was at $1.06 a share? I told all that any rescue package wouldn't be advantageous for current common shareholders and I was absolutely correct. I started shorting this thing above $1.30 and have been correct the entire time. This stop gap measure is simply a way for a major common shareholder to move AHEAD in line and make sure to get money after a liquidation---versus staying at the back of the line like all of you. They have the money to jump to the front---you do not. If you don't bail as soon as possible you will be very sorry. REMEMBER THIS POST
Sorry longs but you were warned a billion times. You have only yourselves to blame. Went to radio shack myself this weekend for some go pro gear and they had zero stock. Empty shelves. Yep!
I needed a bunch of Go Pro accessories and the Radio Shack near me had NOTHING in stock. They directed me to a store 10 miles away. So...I went somewhere else.
It actually IS closer to what I predicted. this is simply an effort for SG to gain control of the company and get its investment back in the eventual liquidation. they just want one more holiday season to have full price retail liquidation and then a debtor in possession after a BK will allow them to liquidate the company and get paid back. very smart move...but still means current common shareholders are screwed. royally. so...i take back my congratulations and replace it with an I Told You So. Enjoy the weekend. This thing is TOAST.
A hearty congratulations are in order. This is a big surprise to me as I didn't think there would be any way someone would put that much money on the line. Certainly it helps move Standard General in front of the line in case of liquidation but it does allow RSH one more chance to get out of trouble. My personal belief is still that RSH will have to file BK and liquidate. This will just delay it until next year. Longs who bought in below a buck will make some good money here after this announcement is made. I would definitely sell out with a profit. congrats.
let me tell you. This is IDENTICAL to what Blockbuster went through before being FORCED to file a prepack BK despite money being offered for a restructuring. The bondholders and lien holders don't give a rats behind about common shares. Obviously right now Standard General does. What they want to do is buy debt which would put them in front of the line with the other debt holders and would allow them to see some return on investment even in the case of a liquidation. It backs up their common shares so they don't see a full loss (when liquidation happens). the other loan holders don't see enough hope to allow another person to the table to get the scraps when they liquidate. there is no hope here. who was frantically selling out as this thing climbed? you should know better than to fall for this.
Have a good day and weekend. I believe news is imminent. And as I've been saying for some time---it will be a BK of some kind but likely a prepack. Tomorrow or the weekend will bring news. #BK #RSH #duh
Great work! I started shorting at 1.50 and doubled down at 1.30. I won't cover until right after the bankruptcy announcement. or at least the next trading day when it tanks and before the dead cat bounce. best of luck to all.
i'm truly sorry for your losses. and for how you'll feel as they continue to mount. best of luck in the future. because the present is ugly.