strong buyout valuations are only achieved on flawless execution or if the sum of the parts valuation signals a huge bargain opportunity. Given the recent setback and the current tiny overall revenue size I wouldn't expect any offer to be put on the table for now. Company will have to prove first that 50% revenue growth rates remain achievable going forward. Would also look for a secondary offering as cash is running low.
actually the company currently is trying to sell shares TO YOU and not the other way round - they need money to pay back a credit line provided by two of the major shareholders (actually these are the guys who are backstopping 34% of the unsold offering shares at the $4.50 price tag).
so your shares won't be bought by anyone unless you sell them on the open market but of course you won't get $4.50 for them curently. Regarding your rights: Either execute them and buy discounted shares from the company at $3 or sell them on the open market. You need to tell your broker about your decision otherwise the rights will expire worthless or at best might be sold without limit on the last day of trading by your broker.
here's one of my postings from last week:
"By the way I'm fine regardless how things play out today. If it gets indeed chopped down I will buy back my shares at bargain prices. If it finally manages to squeeze out the shorts I will buy back the shares, too. So whatever happens today I will like it."
Covered the short on the next day as the stock showed signs of strength and went long as announced. Another great gain already. I never hold short positions longer term. And SPRD is a great company anyway, why being short here ?
they don't even sell what we would call cars and they are hostage to Chinese local government actions which doesn't allow for healthy margins. The stock has been picked up as a Tesla play but this as far away from Tesla as China is from the US.
so enjoy the ride but don't forget to take some profits
calling the 9.5% bonds in full now
new bonds yielding 6.75% for around $22 mln in interest savings
that's right - revenues for the remainder of FY13 will be below $20 mln with no meaningful improvement until FY2015 - a too long time frame for most investors
agree - would see this below 8 two weeks from here
despite two analyst defenses and no downgrade the stock is already trading below after hours levels on an otherwise friendly day for the market - would look for another huge down day here
no chance they will withdraw bankruptcy - the company would remain highly overleveraged and wouldn't be able to generate the cash flows necessary to pay the interest costs.
Yahoo doesn't allow links to be posted here so you will have to go the SEC website and search the filings for XIDE - search the 10k for the word "delist" and you'll find this:
rading in our securities during the pendency of the Chapter 11 Case is highly speculative and poses substantial risks. It is probable our common stock will be cancelled and that holders of such common stock will not receive any distribution with respect to, or be able to recover any portion of, their investments.
It is too early to definitely determine if our Chapter 11 plan of reorganization will allow for distributions with respect to our common stock. It is possible that these equity interests will be cancelled and extinguished upon the approval of the Bankruptcy Court of any such plan and the holders thereof would not be entitled to receive, and would not receive or retain, any property or interest in property on account of such equity interests. In the event of a cancellation of these equity interests, amounts invested by such holders in our outstanding equity securities will not be recoverable. Consequently, our currently outstanding common stock would have no value. Trading prices for our common stock are very volatile and may bear little or no relationship to the actual recovery, if any, by the holders of such securities in the Chapter 11 Case. Accordingly, we urge that extreme caution be exercised with respect to existing and future investments in our equity securities and any of our other securities.
Our common stock will be delisted from the NASDAQ and will not be listed on any other national securities exchange.
We have received notice from NASDAQ that trading of the Company's common stock will be suspended at the opening of business on June 24, 2013 and NASDAQ will file with the Securities and Exchange Commission to remove the Company's securities from listing and registration on NASDAQ.
so revenues for the remaining three quarters combined will just be around $30 mln. 2014 estimates will have to come down as well with the largest customer scaling back in terms of orders. Despite the almost 30% haircut in the last few days the stock should still be sold here on ongoing uncertainty. Would expect at least one analyst downgrade tomorrow.
with the original investment thesis broken institutional holders will have to exit the stock - with future estimates going down big time the stock isn't a bargain either. There's no reason to own the stock anymore.