your response is cryptic and appears to be an attempt to obscure the truth. what SEC filing states that LUK only gets 13% of equity? I see nothing like that. Be specific or stop wasting my time.
LUK has taken over ownership of almost all equity. In the event of a sale there's only a small carve out for FXCM, ie shareholders no longer own very much of this company, LUK is the only winner here
Have to admit you make some good points. Be very surprising if PPS doesn't fall significantly now. I don't think it means management lacks confidence in the product, but it is almost always interpreted that way by the market.
The PPS has shown a lot of strength. The bashers here talk about shorting a lot but notice they jump in and out of a position for 1 or 2% most of the time, assuming they're telling the truth about those trades. All about study results now
Execs cash out shares all the time, doesn't necessarily indicate a buyout. It's just pumpers trying to spin things. Most likely price will fall significantly on Monday, and bashers will have a great story to run with until some good news comes out.
I think those reports are valid as a worst case scenario. They're looking at the loan which was done under distress and seeing the severe liability it places on investors. That's a smart thing to do, because it is the risk here. If they can not pay it back quickly, then shareholder equity is very low. If they can get it paid of quickly, then they're almost back to normal. And the fact is that FOREX is currently very active, so IF they can stay afloat they will probably see windfall profits.
Not sure I understand your post. You think they're going bankrupt?
Cash and equivalents were over a billion. Maybe they need cash, since they are in the business of forex trading;) The article said they can sell some other assets to pay it off. Personally, I am going to do some reading over the weekend. So far looks like a rare opportunity
It's not great news. They took an emergency loan in distress. Clearly it was a close call but they saved the ship. Doesn't help people who owned this before the crash, but it's probably worth a lot more than $2 if they do stay afloat.
I think this thing is a home run for longs. After hours activity today is nonsense, rarely translates into real pps movement. They have reiterated more than once that they are not insolvent. FOREX volume is way up, they have substantial assets which can be tapped. Book shows more than a billion in cash & equivalents. I will buy on Monday, if it doesn't shoot up too fast. I see no reason to sell at this price, regardless of how volatile it is in the short term. My only caveat is I won't be taking a huge position, because I don't want to deal with the swings and because, obviously it's still a risk :D
U sure it's the same id?
They obviously handled it better. All they had to do is make sure positions did not go negative and the situation becomes a windfall for them
Agreed. I don't know how hard it will be to pay back the loan, but balance sheet has cash & equivalents over a billion. Maybe they can cover all or most of the loan quickly.