and it reads like a hundred other discrimination suits I"ve read.
They all have a mean boss, they all go to counseling and they all want to be compensated.
Also, the home deport story makes zero sense. So the home depot rep messed up, admitted it, but then still asked for 4M to cover his rear, and the poor depressed lady said no while the mean CEO stepped in and gave it to him? What the heck?
The reason she doesn't want to quit is she makes lots of money and doesn't want to give it up. She knows she's going to be fired after the audit committee stops supporting her..if they ever did....maybe they just wanted to avoid a discrimination lawsuit so they were placating her.
In any event, if what she states is true the audit committee is fully aware of everything Yan is doing business wise and doesn't seem to have any problem with it....or I'm sure the reversal of all his decisions would have been mentioned.
You can't really blame Yan for this. No one could have anticipated a 25K "he said she said" suit would wipe out 100M in market cap.
Only in this crazy world of high frequency trading could sometime like this have occurred.
It's also sets a kind of scary precedent going forward. So if I short my company's stock and then sue them for some made up nonsense for a few bucks does that set me up for a million dollar payday?
And don't give this insider trader law nonsense, everyone has neighbors and friends and the SEC is not going on a fishing expedition for small fish.
She probably didn't sue them then because she wanted to keep her job.
My guess is they at this point they gave her a termination notice and she
wants her piece of flesh (25K) before leaving.
While no one anticipated this type of reaction from a simple small suit the fact it occurred
should be a wake up call to the company.
I expect them to settle (give her the money) within a few short days.
Geez, twenty minutes after the halt they post their advertisement on Yahoo.
I doubt they even know the claim is chump change (25K).
They just look at the hit on the stock price and throw the PR against the wall and see if it sticks.
They have no more clue the inside details as to why she wants 25K any more than anyone else here.
I expect the company to come with a full story early tomorrow with the details.
but you can profit from it....I leaned that a long time ago.
This is way overdone, IMO, but rather than complain I just see it as an opportunity.
A bogus article that effects less than 1% of OCN's portfolio (even IF it played out) and downgrade by an analyst that knows about as much as anyone else is not a good reason to chop 10% off the price here.
Most moves like this correct usually within a week.
That strategy wouldn't have worked so well last wed when it opened at 22 and moved to 24 in about 10 minutes.
Best to just play the range of 22-24 if you're going to daytrade. There are a few fakes above and below, but that's generally where it's traded for quite a while now.
I guess everyone is waiting for earnings before committing more then one day.
It's clear the company wants to start buying back shares but can't because they're coming up on the earnings.
Once that is out of the way look for a significant move up....if they're good and management follows through....both of which I expect.
NTI got hit to the tune of 73M for holding that stopping the hedges at the worse of all possible times but barring that, their other numbers all indicate this will pay north of 3 dollars in distributions going forward (and increase from there).
While those hedges hurt NTI big time last quarter they would have hurt them to large extend this quarter. Oil has moved up 20% from the Dec lows meaning NTI is now benefiting from the move.
Last quarter NTI would have distributed over 1 dollar per share is not for the write down (and yea, it was real cash not just a balance sheet adjustment) and I expect they will do that or better this quarter.
There is simply no way WSN is not going to buy NTI, and probably sooner rather than later. It's turning into a cash cow and the market is WAY undervaluing it for it's potential. WSN can float a bond at less than 4% interest in this environment and pick up NTI's cash spin off of over 12%....even at 30 dollars a share a buyout of the 60% they don't own already is inevitable.
It needs to go through it's bottoming process and let all the sellers out before moving up more than a few cents.
Most buyers that are waiting, including me, think maybe that move up from the bottom was just a DCB and more pain is yet to come.
If it rebounds and starts to move through the 6.10 of the other day then it's more than just a DCB and the move will continue.
So while I agree this move has been way over done for the potential that it has I'd rather buy it at 6.50 on the way up rather than 5.50 on the way down.
"Asps said they would earn between $4.45 and $7 this year."
I don' t believe that's correct.
They gave two scenarios....there was not really an in between scenario that I can remember.
Scenario A was 4.40 and B was 7.90.
Clearly the market doesn't believe either even though events at OCN and HLSS tend to validate management's comments.
Has MM ever had good earnings?
Really, I can't recall a single time they delivered good news.
They have always missed estimates and guided lower....and then announced they spent more of the IPO cash and shares acquiring the next great thing (which has never panned out yet).
So....the last thing I expect is a run up into earnings.
That said, maybe this time if different...and yea, I know those are very expensive words.
The average price of gas in MN, where most of there stations are located, has jumped .30 cents in the last month. As usual, as oil jumps the price of gas jumps immediately.
That's why the spread has moved so much recently.
Whenever you have accounting issues there an opportunity, if you're short, for a major move down when all the skeletons get exposed. It's a generic thing....you find a company with a CFO resigning or working on a revision and you short it. Sometimes it works out great....just check out MX on Friday.
So far it's been a good play here, but the game continues. The shorts are betting, like MX, more bad news is on the horizon and a big payday for them is just around the corner.
Odds are they will gradually cover over time if nothing unexpected comes out. Most stocks take a year or so to recover, even if the news flowing is all good, because the company needs time to rebuild investor confidence. The thing is, however, RCAP has about a 400% move to recover from here. Even if it's slow, I'm ok with that.
Thought it was payable to record holders on the 17th....back it up two business days and isn't that tomorrow...making today the last day to own the stock to get the .49 cents?
The stock is trading like it was yesterday.
Never raise capital and future liability?
FAB can always raise money the old fashion way, the way Spencer did for the last decade keeping FAB afloat....sell shares into the market.
At this point I have no idea if the POD business is stand alone profitable, but with 6M in revenue and growing it stands a chance.
It was more valuable than the current market cap before the acquisition (shares outstanding should drop to around 10M).
As for future liabilities.....I'm doubtful FAB USA will be on the hook for Zhang's actions in China. As far as I can tell debtors wanted nothing to do with the US operation as everything was guaranteed by Zhang in one form or another.
That's the way I saw it from day 1.
My thinking was in China stealing from US investors is seen as perfectly acceptable.
But stealing from Chinese investors get you bullet in the brain.
Zhang clearly was hoping he could steal enough from US investors to pay back the funds
he stole from his Chinese company, before being caught.
I never considered Zhang would be that stupid.
I know of no other Chinese scam that didn't raise funds from US investors in one form or another, for the very reason Zhang is finding out about.
So now what?
The big question is what is FAB responsible for in China? The 16M bond was guaranteed by Zhang, as were the other loans. So is the US side responsible for debts incurred by Zhang?
The POD business generated 6M in revenue last year and is growing. It's worth far more than FAB's current market cap (1M) if the salaries are put back in line and Zhang's debts get buried along with him.
In order to file for BK you have to owe someone money....minus China just who does FAB owe money to?
The Moody's PR not only dropped the share price 10% it knocked out the share price uptrend it was forming from the positive release of news by the company. But one thing I've learned through decades of trading is don't fight the news, profit from it. If you believe the news is bogus then the market just gave you shares at 10% dollar discount....if it wasn't for this release RCAP would be pushing 11 today in an up market.
If you read the PR Moody is saying it's review will be based mostly on what the next earnings report looks like from the company.
Analysts have been lowering estimates since the accounting problems surfaced at ARCP, yet RCAP audit came up clean and in the last two updates for Dec and Jan management is stating business is returning to normal rapidly.
My guess is the share price is still near it's 52 week low and the short interest high because they know Q4 is going to weak along with a major one time hit for the settlement to ARCP. The problem with that is the markets look forward, not behind. RCAP is going to trade on the guidance management gives going forward, and by the looks of the last two PR's they don't look so depressed to me.
You don't understand the purpose of the puts.
Luxor just took a 25% interest in a "distressed" company.
They are looking for protection on the downside.
It's normal for funds to hedge their bet with large positions in puts.
If RCAP tanks down to 7 or 8 or bad news a 10% position in out of the money puts
can make up most of the loss for them.
If RCAP moves rapidly up (or just stays in it's range) puts would just be viewed as an insurance policy and
would expire worthless (which is probably what will happen).
Moody's kind of put a damper on the move up today related to RCAP's release last week. Should be a short lived damper, those numbers are impressive and will move the stock higher into earnings (and take RCAP off the Moody's radar).
NTI, over the last 4 quarters, has returned 2.90 cents to share holders.
That's north of 14%.
Year ago they did .41 cents and the low share price until the next distribution was north of 23.
In the end none of this will matter because Western is going to buy NTI. They paid a .30 cent dividend with
a share price nearly twice of NTI.
Which stock would you rather hold if you're looking for dividends/distributions?