That would be a good question for the conference call!
My theory is that they were on the hook for $25 million for the portion of FL they sold to investors, which was contingent on it IPOing by next May. With an ordinary IPO, for actual cash, looking unlikely, trading it for newly-issued shares of a sympathetic collaborating company looked like the way out of their pickle.
Let's see what Bison thinks.
No, their revenue was $17 million. Their market cap is a few hundred million, but it's almost doubled over the past month, which is often what happens when a company is about to issue new stock.
A someone else said, this looks like a reverse takeover. NQ will be the controlling shareholder of Tack Fiori. Maybe they see synergies between Tack's apparel business and NQ's Inmotion.
They're selling it for $570 to $630 million of, get this, newly-issued stock in a company that, according to Yahoo Finance, had $17 million in revenue last year.
Well, now we know FL is almost worthless. It's been sold to Tack Fiori, an apparel company with 16 stores, not for cash, but for newly-issued stock. How much is Tack Fiori worth? According to Yahoo Finance, its revenue for the past 12 months was $17 million.
All of which means earnings will be negative, again. Which is OK if you're Amazon, but not if you're a struggling company under a cloud of suspicion.
Cheney's Halliburton is dual headquartered, with one HQ in Dubai. The U.S. will have a presence wherever large US companies do business.
Yesterday when it went down and shorts said it was because the earnings got leaked, longs said that was incorrect... are we now to believe that earnings have been leaked only when it suits one's views?
I don't trade VXX because of its built-in decay. I sometimes trade XIV, which is kind of VXX's inverse, but only as a short-term trade. Because VXX depends on not just absolute VIX futures values but also the relationship between front and next-to-front-month futures, it makes it difficult to accurately predict where it will go long-term.
If you look at the inflation-adjusted price of oil, it wasn't above $60 until 2005, with the exception of 6 years in the 1980's (oil embargo). For much of the 1990's, oil was below $20 (inflation adjusted - 2014 dollars). I can't believe the world economy will crumble due to $60 oil.