Are u insane? Why in God's name would you want to buy a stock in a company that well be filing BK in Jan?
In other words, something good has to happen sooner rather than later. Penney’s may not last long enough to make it to the 2014 holiday shopping season because the $2 billion or so in liquidity may not be enough to get the company through a tough first half of next year when a restructuring may take place -- a restructuring that the company is not even planning for.
why short here? Just wait for $200 plus.
Don't you just love Unions? They could give a rat #$%$ about you bag holders. Unions will suck the blood out of any company it comes in contact with. CTB going back under $23, then $18...
SS is 39 trillion in the hole, where in hell did you get $2 trillion plus?
Great call by FBR.. Lets see they have gone from $24 to $17, now $7. Yep they are worth their weight in sh.....t...
Welcome to the bag holder club. Look on the bright side your not alone. See you at zero....
It does. there is a bottom it's zero.. You know they are going under. No buyer to save you on your worthless shares. Your toilet paper you wipe your #$%$ with, is worth more then Twgp shares....
Back in my trading days, a disembodied voice would come over the speakers on the floor reminding us “not to catch a falling knife” whenever a stock was in free fall. I’m reminded of that now as I watch shares of Tower Group International (TWGP) tumble this morning.
Tower Group offers all kinds of insurance, from property and casualty to reinsurance and workers compensation. And last night, it announced that it had increased its loss reserves to $365 million, well above what investors had been expecting.
William Blair’s Adam Klauber and team explain what the increase means:
Tower’s reserve charge was materially higher than our and most other estimates. The size of the charge suggests that core earnings power is likely less than our downside estimates, an A.M. Best downgrade is still a possibility despite aggressive reinsurance actions, and the company could be in for a long-term workout process. The reserve charge of $365 million equals a sizable 44% of prior tangible book value, which suggests the company will be challenged to maintain prior levels of operating leverage. As we have advised in the past, we suggest investors remain cautious on the stock. Even with an apparently depressed stock price, the long-term nature of a potential turnaround/workout suggests the stock will likely remain at well below historical levels.
Klauber had been expecting earnings of $1.44 a share in 2014, well below forecasts for $2.17, but after the charge has lowered his forecast to 58 cents share.
What amazes me is that this is the third drop of more than 20% in just the last two months. On August 8, Tower Group fell 24% after it postponed the release of its second quarter earnings as it tried to figure out its loss reserves. On Sept. 18, it plunged 28% said it would release results in October and FBR warned that Tower’s reserve charge would be much higher than the $60 million to $110 million the market was expecting at the time.
Did anyone imagine it would be this bad?
There is zero reason to own this pos at any price... Not even for a dead cat bonce, it's dead for life...
FBR Capital lowered its price target for Tower Group to $7 after the company disclosed a reserve charge of $365, which the firm believes does not have a tax offset. FBR says it is now looking at Tower's valuation on a runoff basis and keeps a Market Perform rating on the name.