2 readers have given their thumbs up. But, what do you think? Are the lawsuits being drafted as we speak? Will their issuance cause shares to drop in price? But, more importantly, what if the Shareholder Suits are filed...what does that mean for TSLA's cost of capital? Will it be able to raise new equity at a favorable price?
Can't believe no one else has a comment. I've seen shareholder lawsuits with less foundation. What will a series of suits filed by Plaintiff's Attorney's do to TSLA's ability to raise equity?
I don't like Shareholder Lawsuits. But, I'll be surprised, given the drop in price and the recent offering, if the Shareholder Suits aren't being printed now. After all, Musk is Bailing Out Musk with TSLA money. Isn't he?
VRX has been the key to Specialty Pharma. But, I believe the group will now be lead by action in AGN....".The King (VRX) is dead....Long Live the King (AGN)"
According to the company, mediation discussions with the attorneys were scheduled for the end of May. Settling this matter, even if it costs the company money, should relieve a lot of price pressure. Current status?
Does your broker work for EF Hutton?....Because you know the old saying...."When EF Hutton talks....people listen".....:) Sorry, it's an old joke.....from a very old commercial. Tantamount to saying: "From God's mouth....to his ear". I guess we'll find out in August if he's knows what he's talking about.. In the meantime....if the IBB continues to rally...and the AGN/TEVA deal closes in a couple of weeks....maybe ENDP will get a head of steam up and close that big fat gap in the chart between $18 and $26. After all, ENDP's PE multiple on revised projections is still only 4. Jesus...how cheap does your broker want it?
Plaintiff's Attorneys who pursue Shareholder Lawsuits aren't engaged in ambulance chasing. That's giving them far too much credit. These people are engaged in extortion. - "Blackmail". ENDP is not trading at 4x EPS because it's guilty of wrong doing. It trades at this level because VRX is casting a pall over the entire group. Sentiment changed and the attorneys working with Short Sellers are now doing what they can to capitalize on a change in momentum. I don't blame the Short Sellers. They serve a very useful market purpose. Healthy markets are supposed to go up and down. But filing a frivolous lawsuit, ostensibly on behalf of shareholders, only prolongs the downturn. And that's not only bad for shareholders, it also hurts the business, customers, vendors and employees. So please, no tears for the attorneys. As I said in my original post...The Law Regarding Shareholder Lawsuits needs to be rewritten to change the incentive structure...because the only real beneficiaries are the attorneys who file them....and that benefit clearly isn't worth the cost that the markets and shareholders incur to keep these Blackmailers in champagne and caviar. BTW: Sorry about the soap box....but these people tick me off :)
I confess....I really hate Plaintiff's Attorney's. Mainly because they disrupt the natural ebb and flow of the market. Here's what I mean. ENDP appears to have bottomed. Typically we could expect ENDP to retrace 1/3 of its fall from 4/22 -5/12. That takes us to about $21. But, that recovery, although it would benefit most shareholders...is not in the interest of Plaintiff's Attorney. So...what do they do? Three (3) attorney's today decided to remind us that they were filing suit against the company. One of these attorney's told us before the market opened (stock went down) and Two more reminded us within an hour of closing....as the stock was trying to punch through resistance at $18. . Do you believe the timing of these press releases was a coincidence? Or, do you think it was a deliberate attempt by these firms to cause a sell-off before the market opened and before it closed?. Because I don't believe in coincidence. I believe the timing of these announcements is a deliberate attempt by these Attorneys, working with Short Sellers "To Manipulate the Price of the Shares". Am I right? Question: If that's what they are doing, are these firms potentially subject to sanctions by the Enforcement Division of the SEC for attempted stock manipulation? And, if not....should they be? My feeling... .the law needs to be completely overhauled. We need to reduce the incentive for attorneys to bring these kinds of actions. We want management to be accountable to all shareholders. But, as written....the principle beneficiaries of the law are 1) the attorneys; and 2) large institutional investors...who eventually absorb the loss and move on. Retail investors, as usual are left holding the bag. They receive very little in settlement....and their shares don't recover....because again... Plaintiff's attorney working with Short Sellers...in fact...Manipulate The Stock...for lower Share prices. So what do you think? Am I just tilting at windmills here?
I agree, Plaintiff's Attorneys are leaches. They don't represent Shareholders. They're parasites. It's all about their 30% fee. I detest these guys. They add no value and they create no benefit. But, they can slow the recovery process down by creating uncertainty. And, t I believe they work with Short Sellers to drive share prices lower. The only way to get rid of them is to drive the price of the shares higher at a rapid rate to eliminate the loss so damages becomes moot. The solution therefore is a "Short Squeeze". Everybody into the pool :)
I count no less than 12 law firms seeking Shareholder Class Action Status against the company. These firms allege management misconduct and they seek to secure.a share of "ENDP s $200 million cash asset as compensation for shareholders who sustained damages. How long do you think it will take to litigate the claims and what do you think it will ultimately cost ENDP to resolve the dispute? In addition, do you have any thoughts on how the uncertainty of these claims may effect ENDP's share price over the next 6 months?
I'm not sure what you are focused on. Where do you think the real revenue growth for JRJC will come from?
Virtuous Retail Cycle? Does more users mean more trades? Does More Trades mean more revenue? Does more revenue create more users?
I'm now convinced the Shareholder Class Action Suit is keeping the price of JRJC from rising significantly! For those looking to benefit from the suit a rising share price works against their claim. So, they're stepping on the stock. BTW: What a weak claim!!....talk about ambulance chasing! That said, according to year end docs, plaintiffs attorney is now suing the company only. Other claims against management were dropped (again...claim is weak) Mediation between the company and plaintiff's attorney was to begin as of the end of May. Bottom-line: "The Attorney is Trying to Get Paid!" If this issue is settled.... I believe the pressure on the stock will disappear. I've sent an email to company requesting an update on Settlement talks. Would encourage you to do the same. E-mail: firstname.lastname@example.org
According to 6k filed this morning, Q1 Share Based Compensation was $1.271 mill. Hence Adjusted Pre-tax income would have been $8.506 mill or 27.7% of Q1 Revenue. Nothing wrong with that!
It's not magic. Check the Income Statement. Earnings were $7.2 mill. But, only $2.4 mill was allocated to JRJC. The remaining $4.8 mill was allocated to "Non Controlling Interest". Plenty of cash flow....but earnings were allocated to another party. Don't know why. Trying to find out. I'm confused too.
Called in as a Private Investor. Listened to the Call. Entered ....*1....as requested to ask a question. Request was ignored. Call ended abruptly.. I guess Managmentt doesn't take questions from Investors. Perhaps some of you know the answers 1) What is status of Shareholder Lawsuits? Year-end filing said mediation discussions were scheduled for the end of May. Outcome? 2) Pre-tax income was $7.235 mill. How much higher would it be if Employee Stock Based Compensation (non-cash expense) is added back?. 3) Of the $7.259 mill Comprehensive Income...$4.794 mill is allocated to "Non-Controlling Interest". Only $2.465 mill ($.08) is allocated to the ADS shares of JRJC. Who is the "Non-Controlling Interest" and how is this amount calculated? 4) Since no Analyst Coverage is available...what guidance does Management offer for 2016? Is it fair to assume $120-$140 mill in revenues and $.30 -$.40 per share in Net Income Attributable to JRJC ADS? How much additional Income can we expect to be allocated to the "Non-Controlling Interest"? Those were my 4 questions. Anybody have the answers?
Consider this: What happens to the shareholder case and the attorney's fees if the stock were to trade at 10x earnings instead of 4x? Specifically, how much less valuable would the suit become if the stock traded at $10 instead of $4.45? Were that to happen...wouldn't the shareholder suits become far less compelling. Might they even go away? If so...doesn't Plaintiff's attorney', who receive a 30% share of any settlement, have a vested interested in seeing the share price of JRJC trading below....you guessed it...$5.67? I hate Shareholder Lawsuits...suing Company Assets.owned by Shareholders..for Management wrong doing... never made much sense to me. If Management screwed up...then sue management. Of course, attorney's don't do that. Instead they file suit against the deeper pocket...which typically is the company. That in turn keeps the company from growing and hard working employees from benefiting from their efforts as share prices remain compressed. And, to me that's just wrong.. It may even lead to "Unholy Alliances" between Short Sellers and the Attorney's of record because obviously one hand washes the other. What do you think? Is there a Conspiracy in place lead by Plaintiff's Attorney to keep JRJC below $5.67? And....is a Conspiracy of this kind subject to SEC enforcement as a form of "Stock Manipulation"? What do you think? Let me know. Better yet...Call the SEC....and ask them. Then get back to us :)
The first question is this: Is a Price of $5.67 for JRJC a natural selling target? The reason I ask...the price ot $4.43, given +$1 in projected earnings and trading with a PE of 4...makes no sense, particularly since JRJC has almost $5 in cash ($83m). And yet, since, since June 3, 2015, good news notwithstanding, share prices seem to stall above $6 and then get hammered below $5.30. Case in point. After recording a short term low of $4.30 on 2/1 the price rallied to a high of $6.05 on 4/12 following year end results. The price then drifted lower for several weeks recording a $5.55 high on 5/17. And, 2 days later, 5/19, surprisingly traded as low as $3.82. That's one heck of 2 day sell-off....on "NO NEWS"! I did notice 300 Puts expiring 5/20 with a $5 strike and thought...well that explains it! There isn't a lot of volume in JRJC..and .there is no analyst coverage, ..so its reasonable that Shorts would push the price around to capitalize on any Long Put Positions. But oddly, more than 250 of those contracts didn't cover on 5/20....so presumably they were exercised ...which may in part explain the continuing pressure on share prices this week. Today the stock is up to $4.43 on news JRJC will report 1 Qtr earnings on 5/31. And, I expect we will see upward movement in the price headed into earnings...for 3 reasons. 1) the report should again be good; 2). JRJC is technically very oversold.;; and 3) that's been the pattern. The question is...how fast will JRJC rise and can it convincingly bust though $5.67 on strong volume if the news is positive? That question is more difficult to answer because $5.67 is also the price specified from which losses are measured in the Shareholder lawsuits filed last July. Plaintiffs attorney's claim management is guilty of withholding material information that caused investors who made investments between 5/6/14 and 6/3/15 to lose a significant amount of money. So...$5.67 appears to be a key price. Right?