I bought this and NOC at the end of February. People thought I was crazy when I told them. Nine months later who knew we will be talking about stock splits for both of these stocks...
Please explain how you managed to "took my gains took a lump" by shorting a stock that is hitting 52 week highs.
You are right. This is very sad, because a lot of american jobs will be lost for the very people who can't afford to lose their jobs. Meanwhile the Ullmans get a gold parachute, write a book, and become a politician, hurting more people.
The other parallels are that politicians destroy things. Today JCP definitely got destroyed. And politicians are liars. Ullman's financing flip flop should qualify him as a politician.
JCP's quarterly sales are not even enough to cover their accounts payable. This is a major red flag indicating very weak pricing power and volume, and the imminent inability to pay suppliers.
He holds 10% of the equity now. But after this 100% massive dilution, I guess he will have 5% interest, right?
On the bright side, the negative EPS will look better, because the shareholder base will be doubled. There are more shares to spread the losses. This is an outrage.
There is no reprieve for this company. After Ackman and Johnson dealt the fatal blow, Ullman flip flops on financing needs to erode whatever credibility left of this company. And Goldman plays the dubious roles of both analyst and underwriter. Too much evil hovers over this company. My condolences to the shareholders.
Since they can't make money from their operations. Flipflopping helped lift the stock by $1. So that's $84 million cash earned by ripping off shareholders.
Buyers and longs beware.
Fairfax wants to take it private without putting in more capital. So where will the money to buy the public shares come from? Dupe some naive Canadian pension fund to lend money? Or lever up BBRY? Problem is BBRY has no meaningful collateral to borrow money. Fairfax itself can't borrow money either, because it is too small and financing options for insurance companies are limited.
because he can.
To put a liquidation value on it, one needs to subtract liquidation expenses from the eroding asset value, like severance, contract terminations, commitments, costs to destroy existing inventory etc.. Therefore the cash balance is actually much lower than most people think.