As it's too coincidental for this fire to happen by chance. I'm thinking of reasons why someone related to Sientra/Silimed started the fire. All I could think of is: it will be less time consuming for Sientra/Silimed to start a new manufacturing plant rather than had the FDA inspect (and issue a fail) on the now-torched plant. The FDA moves at a sloth's pace.
"All the bad news out."
Unfortunately, I can think of a lot more bad news scenarios unfolding due to this company's current state of doldrums. Stocks can drop significantly just on uncertainties, this is because investors have the "hope for the best, expect the worst" mentality.
Here is what Sientra said on Friday:
We are aware of a fire in one of the two manufacturing buildings at Silimed, and are in contact with Silimed in order to assess the situation...... Our management team is working diligently to get answers and we will share additional information when it is available."
But obviously, that isn't enough for you. Here's what you REALLY want them to say: "There is no fire at our plant. Shorts just photoshopped the manufacturing plant fire so they could bring our share price down. BUY SIEN BLINDLY NOW.... PLEASE."
Where did you read this at? I hope it is true.
SEC has control when a company has an obligation to satisfy warrant holders.
The warrant holders already made some of their money back. They have no idea when GBSN will issue a proxy vote to expand share count and reverse split. They're probably pizzed off and are going to have the SEC issue a halt, screwing everybody over.
Still don't believe me when I say these law firms are only out to get their name out? The class action lawsuit space is getting awfully crowded now... too bad nothing will materialize out of it. But, majority of investors are still stupid enough to try and jump aboard these CALs.
Tatoul's post from less than a week ago:
"Absent the sale of Beatport, I think bankruptcy is probable within 6 months because SFX will run out of money, can't raise anymore public or private equity or debt (without Sillerman stepping down as Chairman/CEO), and Sillerman is tapped out as lender of last resort."
... and if TheStreet picks up on this news tomorrow morning, $1.01 is sure to be touched. Even better is the fact SFXE did NOT close at the day's high, as that is usually a recipe for a disastrous intaday selloff the next day, contrary to popular belief.
But, if bankruptcy was going to happen abruptly, Sillerman would not have been able to obtain additional credit and refi the revolving. As I've said several times, When you have a man owning almost half the outstanding shares, BK is never an option. Sillerman will fight for SFXE, he loves the festivals.
this news will take until tomorrow morning to be fully digested. Gap fill from 9/1/15 is imminent. Short interest cluttered up after that date.
bankruptcy is not 'just around the corner'
This stock should double very quickly. Don't think we'll be seeing posts from shhc anytime soon....
people were calling the bottom as high as $2. Not sure why you believe 'everyone' is calling a bottom here. Truth is, this company has real revenues and a consistently dropping share price is starting to reflect disconnection with that. Everybody is pricing in bankruptcy, not the other way around like you're imafining.
Gainey McKenna & Egleston advertsing THEIR lawfirm now. Which one is next? These lawsuits will never materialize. The lawfirms are the real crooks. Don't waste your time trying to class action this thing.
I would ignore the Abbey Spanier class action lawsuit as those PRs are nothing more than personal advertisements for their law firms; all bark hardly ever any bite.
I find it odd how SFXE would extend a buyout deadline only 6 weeks. It seems to take much longer than that for companies to find buyer candidates. An extension of only 6 weeks tells me something is already being worked on. If Sillerman is still wanting to go private, I think he'll sell the Beatport asset to help pay off the debt, and go private solely to own the asset he loves: the dance festivals.
If this whole debacle the last month was merely a ploy to reduce his takeover bid price, he's done a helluva job doing so. The credit rating downgrade, the vendors begging for payment, it's all snowballing.
You're assuming bankruptcy because you believe Sillerman's doesn't have enough cash in his account? This stock has dropped the last couple months solely because of the lack of his follow through with the go-private deal. The bankruptcy fear-mongering always pops up when a stock hits sub-$1.
Sillerman has already become infamous for renegotiating private buyouts at a lower price... this will be no different. Unfortunate for the buyers at $4+, but no lawsuit will ever happen, SEC filings already protected him from his $5.25 pullout.
Notice how the cash demands, credit downgrades and bankruptcy PRs show up as soon as he retracted his buyout. With these assets and revenue, i don't see him giving up so soon.
You're a little too late on your recommendation. The bleed has already started 1-2 months ago. Stocks depressed down to these percentage loss levels often act erratically in an upwards direction. Bankruptcy always pops up when stocks go sub-$1. Sillerman owns too many shares to do that.
Unusual circumstances due to insider holdings, short %, and float. Sillerman's new proposal is going to catch a lot of people off guard.
... especially stock dilution and bankruptcy filings. I wonder if SFXE has anything planned over this Labor Day weekend?