Given the huge improvement in dayrates during the last few months but today the company made it quite clear that they still need more cash in order to deal with the upcoming debt maturity. Actually nobody would have imagined that they still make use of this ill-fated ATM offering. If anything they should have sold shares when the stock was pumped on fast money and traded above $5 on giant volume.
Today's news sends very poor signals to the investment community:
1) The company's cash flow obviously is coming in much weaker than anticipated
2) The convert won't be refinanced (which really should be no problem given current business conditions)
3) $2 obviously is still a good price to sell for management
4) Management doesn't care at all for shareholders
I find it hard to understand why management acts like this and therefore would advice to avoid the stock at all cost.
as said before I would expect the shares to lose 25% easily today and to be down double digits again tomorrow. The news is a strong signal about management's idea what the stock might be worth.
I don't think so - as long as the debt maturity is looming the share price simply has no chance to sustain any advance given the fact that management is willing to issue shares at ANY price. If Frontline management thinks $2 is a good price for shares to sell investors shouldn't think the opposite.
shares might easily be down 25% or even more today as it has become usual on more dilution initiated by management. And even worse the stock will be down heavily for one or two more days as this has been the case the last times
Today's filing again shows that management is willing to dilute current shareholders beyond recognition in order to keep the company afloat (which of course is better than bankruptcy). The shares should be avoided at all cost until the convert maturity has been put to rest once and for all.
strong results and strong volume already but the stock looks much weaker today than in previous blow-out quarters. Don't know if the conference call had any negative surprises or if the stock just moved to far from recent lows. Will cover above pre-market highs though.
no need to cover here as this will be below $1 going into the next conference call
not really - I have been around for 15 years and will stay here even longer I guess
Here we go:
Fortinet downgraded to Sector Perform from Outperform at Pacific Crest
company is sacrificing even more margin and cash flows in order to fuel growth - some analysts sound really puzzled on the call.
Given the share price I would expect at least one or two downgrades tomorrow
the early price action was not about the absolutely abysmal quarter...management on the call projected yet again better times ahead going forward with the company to regain profitability. But obviously there are not many people out there who believe in management's projections anymore.
ok - they decided to underdeliver because of having been criticized for that - great joke
in the red now - would expect the shares to be below $1 next quarter and finally to end up in bankruptcy next year
shorted some shares in the $1.70s - would expect the shares to continue its slide
Given the history of the company I would not belive a single word.
Fiberlan revenues still meaningless.
Gross margins abysmal.
Cash down heavily.
down 6% now - covering here below $5.30 as this is simply a huge gain within a few hours. I am glad to leave this shame of a company again behind me for the next three months