I won't stoop to name calling but secured debt leaves them with a position in the company... your stock will be worthless (kinda like your comments)... I still have a small long position... I lost money on MCP... it happens. Thing is I didn't marry it like you. For all your insight... please share with us how much money you have made here.
personally I don't like you, or your tone in interacting with others. So I will point out your cement headed comments and take pleasure in the fact that you can't evaluate your position here and continue to add to your losses (wanted to say investment but that wasn't appropriate.) Maybe you are young and might learn something here, but I really don't care..
good news is that you started this chain and can delete it too....
wow on the nose... The bondholders would stand to own a decent investment with the debt substantially reduced... the shareholders will be able to at least write off their investment.
Yeah I lend money to molycorp and I'd probably want to give them a low rate as well dream on
Alians pay 100 dollars per share for MCP and you can feel like a king... look at your track record... it sucks
not too long ago, I though that the company assets would make them a takeover candidate... when it didn't happen at 5 I began to realize that.... nobody wants them. Does that change at $2?
I have a brain but I don't see how you can make this statement... raising money at this point is going to take far more dilution than in the past and it will be harder to get a buyer... look at the cash burn rate and realize that the future of this company revolves around the REE prices. Its all timing, if REE prices improve they may be fine... if they deteriorate due to additional availability (or any other reason), then it is just a matter of time...
this stock has lost 70% of its value in the last 18 months. If that doesn't cause concern then look back another couple of years on the charts...
Take a look at GSXN... they didn't go bankrupt but same effect... the did a reverse split 165 million(+) for 1... problem being there were not 165 million shares and they set a price on their own for purchasing any fractional shares... more than one way to wipe out an investor
The brokerage house must make it good in the end... Up till the end as long as margin is maintained and any dividends are paid by the shorts to the holders of the phantom shares the position is not closed... Miss the margin requirements and the position is closed with or without the shorts approval and the position is covered... normally the only real risk to the brokerage is in the delay of liquidation due to the margin shortage.
Shorts are a good thing, they sell me stock cheaper that I could otherwise buy it... In INO's case if the news is... they have artificially reduced the price in advance of the drop, but the drop was coming anyway... if the P2 news is good then they will be squeezed and have to cover the shares pushing the price higher than it will naturally go on very high volume... If you recognize this event its not a bad time to flip some of your shares as once covered the price will retract a bit... as always flipping shares is best done in an IRA.
often its just the server they are on is having problems... many servers make up one database and consistency is accidental... That's why there are mainframes too... single source of data... what a concept
"As long as this remains under $16, shorts have nothing to worry about. Simple as that."
That jump in June created around 5 million short positions below $10 dollars. Very few shares traded above $15 dollars range were during the run up just prior the AF article and it moved a couple dollars in a few days. Shorts were not moving INO up, but they did turn around the trend.
If fact less than 50 million shares traded above $14 and since that number was before the 4 for 1 split the 50 mil need to be converted to just 12.5 million shares that traded over $14 dollars between feb 24 and March 25...
Many of these trades were moving the stock up so I would think they were not short sales...
My conclusion is that your statement is not simple but just plain wrong... 10 million short positions are in trouble at $10.50... just look at time and sales and its easy to see!
Sorting this stock today would be not be a good move in my opinion... there is too little gain to be had.
I once looked at shorting a stock (PTN) in this price range and was told by my broker that I would have to put up either 2.5 or 5 dollars per share (which exceeded the price of the stock).
So potential profit and cost are reasons to avoid shorting a stock at this level.
That said... Holding a short position already established has its own drivers. Covering the short makes the event taxable... In the current year a short position that was opened could have a gain of $5.50 Short term rates would probably be in the 30-35% (guessing some state tax), so why not hold out for the year. The second reason and one that becomes more likely is that is the stock dissolves or is reissued to bondholders then the position may not be closed out or its value is virtually zero which would go a ways towards paying the stock.
If MCP again becomes a stock worth owning, there will be time to get back in... I wish I had realized that sooner, I expect on the next bump up over $2.50 I will sell my remaining shares.
I replied to one of cb's posts on debt expense which it continually replied with info on the preferred share conversion... Of course the content is lost as CB deleted the thread after rudely replying to me... What he couldn't delete was the email stating I had a reply to my post... What I said would have been debatable had the content not been erased. If it had a point... the point will never be known.
SO... based on its inability to interact, childish behavior and overall rude demeanor, I for one will not interact with it from this point on... It won't be on ignore, but for me it no longer exists...
the email (just a fragment of each)
"You said, "You may want to review the numbers you show. They appear to be from the annual statement. I would love to have the share price for that period too. but if you look at the quarterly data the costs are going up dramatically...
The interest..." More
cb_cb480 | Report Abuse blah blah blah ...... #$%$ are you mumbling about c7859.... you stated debt service was increasing qtr over qtr and you gave 4 qtr examples to prove now you are backtracking
my point is debt service was not increasing the reason Q1 seem...
The increases occur quarterly not just the quarters you point out for the converts. The dilution that has fed any debt retirement was unpleasant and I do not count on additional dilution occurring. A full quarter of operations and the results were still disappointing. the pressure on prices in only increasing. If China retracted from the market I expect that the stockpiling that occurred last time would not repeat itself... That stockpiling in itself has caused us much pain...
I held fast from late 2012 adding along the way and I just can't ignore the last two drops... after the first few that I did ignore... this issue is in the last critical stages... hope it works out for you I only have 7K shares left... if they disappear it won't hold a candle to my prior losses...
I think you could use a more open approach to your analysis.
You are putting words into Primedice's mouth.
MCP has a pretty good pattern established for raising equity.
Additional REE is coming to market without regard to what the Chinese do
They can raise equity and still eventually go kaput... have you looked at the 5 year chart.
You provide good input... relax on the defensiveness
Given the timing of the short sale activity, I am guessing that AF made out quite nicely directly or indirectly regardless of the facts...
I got in on the drop below 10... the short position was attractive... at 2+ dollars it sure isn't as attractive as a short so no wonder why the numbers are not growing (there are minimum cash requirements to back a short with my broker).
Wish I went short rather than long when looking in the mirror...
I think that the shareholders will be screwed and now hold a small fraction 7k shares of what I held 1-2 months ago... I recently dropped 13K at 2.62 and was lucky to have sold some just over 5 the day before it was cut in half... When I sold them it was to fund a increase in another position and I had some misgivings for about 14 hours when MCP once again tanked... My guess is the bondholders will end up with re-issued shares.... but they could dilute the stock to nothing and possibly avoid that...