Douggie has iron balls claiming that I was hiding when the price of this POS popped by a couple of percent. Where is he and his cohorts Master B, airline trader, and the others, what with the price tanking Friday? Too bad for them that their pump-and-dump routine comes up against a few people that know something about the company and the industry. Other than recitation of the tangible book value, there has not been one shred of factual data or information from their side to support a buy thesis on this stock.
According to Motley Fool, Kipplingers thinks the SinkHole is a great buy, that investors have over-reacted to the hit to loss reserves and they like, get this, the 17% dividend!!!! Dividend? What dividend? Has the Kippy analyst looked under the covers to see what's moving? He won't like it! And neither will any of the fools that listen to him! What a hoot!
So the SinkHole had a number of specific tasks that had to be completed Friday, lest it be in default of its bank facility agreements, including the LOCs, amended many times. Did management accomplish these tasks? Did management fall short? Is the company in default? Was another waiver letter drawn up, with further onerous requirements laid on the previous ones? We don't know. No announcement, no news release, no 8K filing. How are investors supposed to act on this non-information? One would tend to lean toward the short side, in that, had management achieved the tasks and gotten itself clear of the default conditions, then most likely there would have been a cheerful public announcement by now that all is forgiven and the company can now move forward and upward. However, the silence would suggest otherwise.
"FYI...overall market settlement can influence stocks dimDumbWit,"
Douggie, the market today is up big big big, while your sheet is down down down like you an a Boy Scout! Where's the influence?
Given the fact that there is a long history of many failures of SinkHole's business model, it is astounding that anyone would follow it as blindly as this management has. Thus, the characterization of "stupid" quickly comes to mind....
You have it backwards. As the Fed "tapers" its bond purchases, interest rates will rise and the value of SinkHole's bond portfolio will drop like a stone, causing book value and tangible book value to follow.
In fairness to the SinkHole's management, "fraud" with respect to the loss reserves is almost impossible to prove, and "stupidity" has not yet been deemed to be criminal in nature.
Obamacare will have little impact on property casualty insurance companies such as this one.
More likely goodbye. Company is a melting ice cube. Recapitalization is unlikely as the company likely would not be able to generate a return that would cover its cost of capital. Similarly, for this reason, a buyout would appear to be remote, the company having had itself in the store window for some time now with no takers.
I will assume for your benefit that it is a typo on your part, but otherwise one who cannot spell "resilient" ought not be in charge of his or her own financial affairs and they should avoid financial chat rooms, But you see, it's like this: the company told us some time ago that it was taking a big loss in Q2 and that the report would be delayed quite some time. So last week's disclosures were nothing new and only buttressed the belief of some that the nebulous concept of "book value" and "tangible book value" are translatable dollar for dollar into share price. They believe this conceptual single-point estimate to be both real and permanent, or, better yet, a number that can only rise! How stupid can one be? But it is entertaining to watch.
I'm betting on another waiver, and I'm trying to think of what other onerous provision the bank will put on SinkHole. Paying the lawyers' bills is a classic!