* 120M$ Immediate access
* Enough cash to stock inventory through Holiday season
* "The retailer said it expects those funds to be converted into equity later."
The key word is "later"
So basically what that means is, the stock will continue trading as is, after the holiday season, based on performance the stock will be diluted to allow the creditor to purchase the stock they signed for today (120m$).
Also what this means till that time is, there will be a surge in buying of common stock, which means fewer shares higher value.
RSH's bond price has also jumped , proving that bond quality is also better than before.
Further the article says "If the 120m$ is converted to equity..." meaning, a) this is not immediate b) there is a chance it wont convert to equity, i.e. some clauses in the agreement.
Pfft - Delisting means nothing much. AA was delisted and sold at around 9$ in the pinksheets after about 1 year.
Again this is my opinion:
We missed a golden opportunity to get out or cashout last Friday. The price was all set to skyrocket. The exchange stopped trading, people stopped and reasoned it out, and decided RSH situation was still status quo, hence the gradual drop.
What will happen from now on is this, RSH doesnt have to sell to stay alive, they have to sell and then some to just stay afloat. This is a LOT of business that heretofore was missing. So what makes you think all of a sudden they'll thrive?
The stock truth be told, will meander around the 60c to 1$ mark from now on, if there's some speculative news on sales etc it may skyrocket, albeit ONLY temporarily and then it will fall again.
So word to the wise, watch closely look for any news, management shuffles, new lines of service, etc and slowly close out your positions.
The product and the concept that was RSH is dead.
I think it is now safe to say that support has been established at .9$.
The problem is it will perennially be on the verge of delisting whereupon the stock will surely dive.
I have a feeling the creditors of RSH probably have sought an extension vis a vis delisting with the NYSE.
2 key pieces of data will help move this stock - sales and cash burn. Even if sales arent stellar , if they can minimize burn then the stock will rise.
Next conf call if the CEO can show healthy cash on hand, the market will respond positively.
I should have done as follows, bought from 1 brokerage and short sold from another.
Immediately because of the resulting dividend , the fall in price I could have bought and made a profit from the short sale.
Then wait patiently with the other brokerage until the stock came out of the doldrums and sold normally.
It needs to be continuously below 1$ for 30 consecutive days. RSH hasnt therefore delisting cant be an option.
But isnt it unfair? Last time "hot news" came out, the stock peaked at 1.80 ppl bought etc, obviously it tanked and is now slowly going back up, so why do it sometimes but not always ?
According to the Exchange the reason code for the halt is T1 - anyone know what that means?
So last time hot news came out they allowed trading and the stock popped and tanked, why cant they allow trading to continue now that more hot news is coming out?
What is the reason for halting trading?
Now he will be angry, why oh why?
Can someone technically explain why its going up rather than down?
Come Jan the stock will be diluted so wouldnt the market respond by making it cheaper to begin with thereby making the dilution a wash?
SDRL and ESV both have experienced a severe fall of their respective prices post Ex Div date this time around.
The last ex Div was in June and the stocks fell around 2$ but SDRL immediately recovered to cross pre ex div date price within a week.
This time it seems to have fallen off a cliff.
Nothing in the news, earning appear consistent, no major shift in strategy, newer rigs, compared to ESV and RIG, so what gives?
ESV too? That seems odd.
For a 1000$ div i am now down around 3k. :(
We dont need them to buy RSH heck we dont even need anything from AMZN, but what will help skyrocket this even a rumor that AMZN is interested - that will propel RSH to 2$ for a day.
Yep thats all fine and dandy, but if you can plot a trend against a reason for said trend , that would be helpful.