We ( our 8 person investment group ) agree that mystery remains on the recent large block trade of shares. As to the ownership of STRL assets and liabilities in the case of STRL belly up, things are also a mystery because the devil is in the details for the financial obligations undertaken by STRL during the past several quarters of financial distress.
The sureties base their pricing structure on the basis that they have no liability--they are simply providing risk free bonding to credit worthy contractors.However, when troubled construction companies such as STRL want surety bonds, the sureties demand iron clad lien-able collateral as a before they will issue surety bonds.
Also, every other entity that interfaces with STRL will seek financial protection as the price for STRL obtaining their services,For example, sup[pliers of goods and materials will demand up front payment before they deliver.Unions will demand upfront union dues payments. Insurance companies will demand full year up front premiums--they won't accept monthly payments.
STRL has recently refinanced it's equipment,However, you can be sure the banks and others will seek to take it if their is a Belly Up situation.All of these issues become very complicated--the devil is in the financial details because it becomes a dog eat dog situation whereby all parties want to be first in protecting their interests.
Summarizing normal dealings by suppliers, sub contractors, banks, etc. are not in place when dealing with a construction company that is unprofitable and lacks assets to cover the losses.
The huge traded block of shares is a mystery.Obviously, STRL management knows the facts, but won't disclose. For sure it has nothing to do with the Russel Exchange and everything to STRL's huge financial problems. Also, for sure, the financial picture is much ,much, worse than STRL management has disclosed.
We continue to opine that the big trade has it's roots in one of the banks, hedge funds or equipment refinancing company protecting their interest in case of belly up. Bely up law is complicated, and who would own what assets,-- sureties, banks, equipment refi companies, project owners pension plans etc will depend on the terms of the various financial dealings.The largest stock owner usually has the biggest clout in belly up legal proceedings.
We opine that one or more of the big time creditors wanted to be first in line for belly up in the bankruptcy court.Therefore. the big trade was accomplished by purchasing a big block of stock --probably from one of the banks or hedge funds that own and control STRL.
We opine the purchaser was COAMERICA BANK protecting against a default of the $15 000,000.00 payment which is due tomorrow, and another $15,000,000.00 on Sept 31, 2015.
Obviously, this is very bad news for STRL and the shareholders.If the big block of shares was for investment purposes the price would have jumped up --the fact the price stayed the same is a dead give away that financial concerns are much worse that admitted to by STRL management. TIME WILL TELL
We have it from an informed source that DE KANGAROO KID is putting together a proposed bid to take over control of STRL.
DE KANGAROO KID claims he's highly educated
. Whyze, I gots a C Minus from Poedunk Universaty said de KANGAROO. TWo DAyz Ize is mosta pleased to hounounce that our team haz a raizd most $189, 14 towards our take over plan Weze has a been promised financial support from DE BOYZ IN DE HOOD soze weze is a serious bidder for dis company saiz DE KID
DAT KANGAROO KID, de construction BACK HOL operator-- him say
DE BOYZ IN DE HOOD--DEMS AIN'T NO GOOD!!
DE BOYZ WANA BACK DOOR PLAY, BUT DEM CHEAP SKATES DON'T WANNA PAY.
Cause its der Fourth of July,DE KANGAROO KID is gonna give DE BOYZ ---A SUPER HOLIDAY SPECIAL
One dollars each, or three for two, to take a little crack at DE KANGAROO'S ring dang do
DAT KANGAROO KID announced today that one of his friends from the bankrupt Myers outfit friend had been had hired by STRL as a new Vice President in charge of finance
.MR. UPPA YOURASSA is highly qualified and will be a valuable member of our STRL team said de KANGAROO KID. Weze don't have no problem assigning Mr. UPPA YOURASSA to the sensitive task of raisin funds so like de Timex Watch weze takes a likin but weze a keeps on a tickin.
Dat Kangaroo Kid is four hundred and one pounds of BACK DOOR fun
He's de BOYZ IN DE HOOD FAVORITE BACK DOOR HONEY BUN
Dis Kangaroo Kid gives discounts --he don't make em pay, cause it's the July 4 holiday
DE BOYZ IN DE HOOD wid the Kangaroo Kid is gonna have BACK DOOR FUN TONIGHT
Dat Kangaroo Kid sayz he is in der Construction business.He operates a BACK HO.Kangaroo Kid sayz he charges by de hour.Youz gets lotts a fun when Ize rents mize BACK HO facilities to der BOYZ IN DE HOOD
Dis Kangaroo Kid -- him no fool. !!! He gotta his educkation in the Gelato school of hard rocks.His frinds-- the BOYZ IN DE HOOD- thays do reely like dis Kangaroo real good.
Dem BOYZ IN DE HOOD thays sures likes de Kangaroo Kid . Dem says:
"He's four hundred and one pounds of back door fun,
For dem BOYZ he's our number one HONEY BUN
Weze all like him for de back door fun.cause his price is right
, Specially on de Kangaroo's haf price night "
Dat Kangaroo Kid is der reel ting.He was raised in a gelato and he's gotta a bunch Dem Dem Boyz in De Hood friends Dem boyz think he's sure good. DE BOYZ IN DE HOOD thays a sings :
Dat KANGAROO kid is justa a nice son-of -a - gun
Cause he gives four hundred and one pounds of cheap back door fun
Weze is gonna have back door fun wid him tonight.
He's a really gonna jump and jive, cause weze is a gonna pay him five
Weze is sure gonna have fun wid him tonight
Our dorkie little infantile " great buy " poster SMELLS BAD. He needs to get his diaper changed. However, bless his little demented KANGAROO intellect-- he is saving up the money he got from the tooth fairy to buy 2 shares of this super company BUY NOW !!! follow this great investment Kangaroo--- you can't possibly lose.~~~~
For the scumos who equated their idiocy to the" great buy" fortunes of Strl, wethinks that TINKER BELL will solve belly up problems.Poof --and the reality of Strl and it's cling on bankrupt sorry partners will be gone in a flash.
Well--things are turning up at last.!!! Huge daily share volume of almost 70,000 shares a day.!!!!
This big time trading must be due to those mighty scumo investment genius gurus who tell us all that STRL is a great buy.
WE tire of the twerps, nit-wits and nere-do wells who post on this board.The likes of MRFRIENDLY and his ilk can't speak the fenglish language, they are uneducated,boring, dull, dim witted losers, being worthless low caliber time wasters.Include us out.!!!!!!!
STRL is a death's door as a profitable operation company.Typically, in such situations, management claims that good times are just around the corner, and that the next 2-3 quarters will be tough but after that, profits will return.Almost always good times never return.Usually. the company goes belly up, or is sold for pennies in the dollar.
Also, it is not uncommon, that troubled companies close down their Yahoo internet pages, so that bad news and negative opinions cannot be disseminated to others.TIME WILL TELL
VARELLO is doing his best to rescue this very troubled company and to prevent STRL from going belly up. However, frankly recognizing the horrific financial challenges he faces, and over which he has little, if any control, VARELLO, as a solid manager, will obviously be looking at his belly up options.
Most critically, the fate of STRL is now in the hands of the banks, sureties, and equipment refinancing companies. They will obviously proceed in their best interests, and if this means dumping STRL, or forcing STRL to go belly up,--so what to them it is just a business decision.
From our vantage point, the big leverage that STRL still retains is with the sureties. If STRL goes belly up they will inheret a massive financial problem of completing STRL's on going contracts. By far, their best option is to bank roll STRL and eat loses if they have to.This will be much, much, cheaper than the belly up alternative.
No matter which way you look at it STRL is in very deep financial trouble. We would like to see SHFL succeed, or at the very least see some reasonable light at the end of the long tunnel, However, with 18,000,000 shares outstanding, the daily share volume today was only 70,000--all by shills from the controlling hedge funds.
For valid reason because of horrific bad management, no one is supporting SHFL, We don't understand how the Board of Directors let things get so bad-- the very existence of STRL is now in very serious question.How come did the Board of Directors not see the two twerps that were fired were running the company into the ground? How come STRL has entered into 50% ownership and financial agreement with Myers and Sons, whereby STRL is taking all of the risk by providing the surety bonds when Clint Myers declared personal bankruptcy to the tune of about $70, 000,000.00?
Surely, STRL can, and should, be able to find better partners and better use of it's resources and bonding capacity.Summarizing, it is so sad that what ever way events unfold, STRL looks like a basket case headed for belly up. The scary lack of daily trading volume also confirms this is the way the market sees the issues.
STRL financial statement shows revenue of $117M, yet claims that it also has $130M of retained monies from various ongoing contracts.
This is illogical and does not make sense.Contract payment retentions as a maximum are 10% of the work performed until 50% of contract completion, after that, no retention is with held. STRL claims to have about $750M volume of ongoing work [ we doubt it , however,for this purpose we assume it is correct ]Therefore, assuming that the entire $750M is subject to 10% retention, this only provide $75M in contract retentions NOT $130M.
In situations such as the ongoing financial carnage within STRL it is common place for incorrect financial statements to be generated. VARELLO, to his credit, corrected , the phony figures for percentage of contract completions, versus money earned in the Q1 report. But we opine, there must be many others areas of inaccurate financial reporting.
Clearly, this has been recognized via an independent appraisal of STRL equipment values, The equipment refinancing company has covered all bases and has protected it's interests by only allowing 65% of assessed value of STRL equipment, and 50% of The Myers and Sons equipment [ Myers has no worth while equipment other than a few pick up trucks ] so that it is fully covered from financial irregularities.
We expect the Wall Street Shark companies to start to smell blood in the water and start a short selling program. TIME WILL TELL.
STRL paid $875.000.00 as a loan initiation fee, plus 12% interest, for a term loan of 20M and a revolving $20M line of credit --both not to exceed $40M. The equipment loan is for 65% of the appraised value of the STRL equipment and 50% of the value of the equipment owned by Myers and Sons and Road Way Builders.
Things are so adverse to this mess coming out successfully , that we give STRL about a 5% chance of avoiding going belly up.We hope the idiots and mouth offs that post put their money where their mouths are are by buying this pile of wildly speculative hope and prayer nonesense