Schorsch burnt me once already so I'm watching to see how it plays out. Either way Luxor and Co. will need to convert their debt to equity in bankruptcy court or by coming to terms with the company they increasingly own. Obviously RCAP can't pay the debt service. For the cost of the legal proceedings they could almost buy the rest of the company in the open market. Steve Cohen owns a chunk of the common maybe they keep him in the company and hit him up for some more money. Also most of these companies that they rolled up were bought with stock if I'm not mistaken. To vanquish the stock that they were given for their companies would make for a horrible culture and you could see a mass exodus of the top brokers over to LPL or elsewhere. If big brokers got stock and non-competes this implosion would give them an out card to leave and take a new deal. I had friends who walked on their Bear Stearns deal when they imploded...no contest. Good luck with your bet I may have just talked myself into joining you.
My only question is will they maintain the common after they default. I read somewhere that a default on one of the preferreds eliminates the B share voting arrangement. This is a necessity to break the lock Schorsch has on this company. Maybe, just maybe they default on their debt payment and Luxor and Company gain voting control over the company and they salvage the common stock since they already own something like 30%. Probably just wishful thinking, but going entirely bankrupt , I think might be a problem with the broker dealer net capital requirements and basic ability to stay up and running, therefore I'm watching to see if the stock remains. Wiping out the common isn't a good way to curry favor with all the class action cases going on so I'm not ruling out the ultimate shakeout. I was short General Growth Propeties back in 2008, they went bankrupt the stock fell below a $1 and Ackman bought up a ton of the sotck to go along with the debt he owned and he made a fortune off the stock after the debt was restructured.
My daughter is 14 and she really likes their Jeans. She's begging me to take her there, that is why I'm on this board to get a feel for where this company is in the financial turnaround story because it looks to me(my daughter ) that they are back. I've trade this stock successfully over the years and if these guys give positive guidance on their conference call this thing will move hard. I love to short stocks but to short a retailer going into the Christmas season after the stock has been cut in half doesn't make much sense.
I once stated that they would never issue a dividend or buyback stock because their objective is to fleece investors... I was wrong, on the buyback that is. It seems pretty logical that they would spend the IOU holders pecuniary interest on buying back the insider's stock so they can get out at a good price. After the liquidation takes place, this is going to go even lower, So let it be written , so let it be done......Jack Ma Moses!
Is this a good move, was that a good use of cash? I have no idea I like their cable offerings and the chart but I have no idea about their growth plans. Are we going international, can they leverage a Polish language broadcaster. Looking for a bull case to get aggressive down here.
Let's see Hong Kong requires each stock to carry a vote in order to be listed, here why would we have such a silly rule, B shares, Z shares, Zuckerberg has voting agreements for shares he doesn't own. We see no problem with a Cayman Island shell which holds IOU's to a Communist Chinese company's profits?????
"Those are IOU's Sir, that's as good as money".........Dumb and Dumber
You mean the author Trip Chowder head is wrong, Audi and Mercedes have Intellectual Capacity? Did you notice where Mercedes and Audi have stopped buying parts from Tesla, they must of found some Intellectual Capacity to build their own. The E Golf is a pretty nifty car for around 34k, now isn't that the goal of Tesla to produce a mass market car? I have no idea why they would want to compete on that price level but hey I guess I lake the intellectual capacity.
I don't mind anyone who wants to be bullish on this stock but don't you see the Hubris in these statements? Audi, BMW, Mercedes, lack the" intellectual capacity". Wow, wow, wow this guy is going to rue the day he wrote this.
The CEO of BHP Billiton stated that by their internal measurements they feel that 7% is about right. When questioned why he would say that he spoke of all of his personell on the ground and all their business measurements which they developed over the many years(decades) in which they've been doing business. As he stated just because building and importing of raw matrerials are down, you need to take into account the service economy and the internet economy which is growing above 7%. Very interesting interview yesterday morning on CNBC. Cramer looked kind of foolish trying to give this guy the third degree as if he knows better than BHP. Where does Cramer get off with his growth rate estimates for China, from another blowhard at his Bar San Miquel. I don't even think Jim Chanos would say China is growing at 1-2%. Chanos's short thesis was on the misallocation of capital over the largest infrastructure spend on earth, ever. He won that bet but he's not shorting the second largest economy in the world on it's way to being the largest economy in the world after it's dropped 40%. I'm long at 35, I'll sell if it makes a new low.
I am sorry to say that his company represents all that is bad on Wall Street. I took a bath on this one and hold a token position right now. Let me give you a scenario which could happen. Nick Schorsch and his new friends Luxor, Apollo, and Cohen's company, join forces to take this company private. I don't even think Schorsch needs these guys on board because he controls the majority voting rights for this whole sleazy construct.of the "1" B share which overrides all A shares. It used to be that the non voting shares were called B shares then the wall streets weasels came up with the simple subterfuge of calling the non voting shares A shares. Look at me I have the A share, whoops! So he gets his new friends to put up a bid of say $2.50 after they beat this thing back to $1.80. Board( Group of Monkeys) approve it for a resounding 38% premium to the market price, who could ever doubt that they had the common shareholder's best interest in mind. The new consortium of crooks( I don't know Luxor or Apollo but Cohen is cut from the same cloth as Schorsch) only have to lay out probably like $100 mln in order to buy the remainng shares they they don't own. Fast forward five years and Wall Street will have this Pig repackage and Schorsch will start the extraction process all over again. Your question why is it so undervalued well you have to add in like a Billion in debt, but more importantly the fact that the present construct insures you own nothing, nothing, nothing. Most recently Chinese weasels have employed the same go private strategies after they extracted all of the shareholders money. Oh by the way it is all perfectly legal!!!!! Schorsch has a team of lawyers who have told him so.
They pushed out convertible debt in February with a conversion price of $359, but don't worry they'll pay you 0.025% for the privilege of losing half your money at the 2019 conversion. The offering was done at 242, I think, however the underwriters no this is coming long in advance and they are allowed to naked short the stock as part of the pegging process. Therefore these guys were probably unloading stock in the 260's and 270's, then off course they goosed the stock off its lows to push out the secondary and they stepped in an orchestrated yesterday's move with the "Research Report". Morgan Stanley et al, will leave soon enough as they are not in the business of losing money. The thing with Tesla is they are a drug addict, I mean top customer of the Wall Street dealers, so this dance will happen many times before reality sets in. It should be safe to surf this wave down over the next few weeks, then get out of the water and wait for the next pumped up wave and repeat
So that's a software factory they're building in Nevada, and they are competing with Mobileye with their autonomous driving technology?
What type of Modern Taxi company starts with a $70,000 vehicle? Someday needs to explain to me the great proprietary technology that Tesla has. They don't make any of the autonomous driving technology and they don't make the batteries, they just manage a stack of Panasonic batteries, which by the way is a low margin business.
The stock closed down for the day, a classic reversal would be for the stock to make a new near term low and then finish higher for the day, hence taking out all near term sellers. Didn't happen yet, maybe this time is different.
This was one of the first stocks I owned back in 1991, I think I paid about $13 the stock went up to about $19 and I put a limit order in that was never filled I think I round tripped this pig. Two lessons, when you want to sell a stock, just sell it, limits are for LOSERS. Second thing I learned was this was a pipe dream 25 years ago and it's still a pipe dream. Lots of money to be made shorting Biotech after the worm has turned.
This is a little counter intuitive and I hope it isn't lost on the Brazilian Central bank, but I have a position in BRF, based on the Central bank going into an easing mode. I think after the latest hike they are at 14%. Like Japan and Europe and now China, the anticipation of economic growth and asset reflation via looser monetary policy should send the Brazil markets and economy on its way up. I can't figure out how they still are fearing inflation after the commodity price devastation. I mean these guys are energy independent and they can get all their food from the continent so I don't know where the hell the inflation is coming from. I guess an I-phone is more expensive, but can't these clowns import our fudge the numbers software that shows inflation in check??