in talks. thus not communicating or picking up the phone. deal is iminent. a larger co will buy them out and roll them up. the books are simple in this space. the problems are obvoiuos. bad risk assestment.this space grows from acquisition. they will take out towwe at 10% below book. put some cash on the balace sheet and you have a biz that can créate 500mm on the top line for a giant. not a bad deal
would you pick the pone ? i suspect thier in a quiet period thus in talks about beinig acquired. this is a easy acquisition for bigger player. books take one day to understand. this is a space that gets rolled up often as top,line growth comes from acquisiitons. news of a deal will come quick.
read the tea leaves
look for a top tier player to acquire, re-adjust risk postions , bring in more reserves. buyout will be in the 10-12 range. still very discounted to book. today was capitudulation. margin calls got taken out. i stepped up and now own 5000 shares at 8.51 and feel confortable. buying when thier is blood is not easy but its one way to really get awesome ROI. remember buffet 5bb bet on BOA. yes, he had warrants and is 10bb times smarter then me . must are. just ask my wife. but, Tower is not going BK. thier are more then a few bidders here. look for news anyday. this will be sold by long before earnings.
ps. its going to be hard to find entries now sub 3.50. its going to look cheap now in a month.
good post. agree, tape looks good. seems like a great buyout on multiple fronts. the talent pool alone has to be worth 100mm, yet alone the license deals. i believe the short intesest got cut in half on wed. if the momo continues we could see 5 by jan.
techincals look decent. .the daily and weekly charts look primed for a move up. both mac d and rsi showing positve divergence. we now need the fundmentals and the turn around story to keep taking form. this could be a great turn around story. still alot of shares short to cover. it can happen.