What is your logic? The company can purchase bonds without a default. If the bonds are currently not callable, they simply purchase and hold them until they can be retired offsetting the liability of the bonds at maturity. he advantage is that the can currently purchase them at a deep discount.
Financial Institutions, (Banks) that hold PGN bonds are motivated to make a deal at a substantial discount simply because 'mark to market' requirements put them in a bind if they hold depreciated/depreciating bonds which create a big issue on their balance sheets. PGN needs to acquire and then hold the bonds, working them off piecemeal going forward to avoid any significant tax issues. A negotiated private deal could well be at or below 15-25% of face value. I have seen this type of transaction in the REIT industry work out very well! It is a little messy for the accountants , but, it pays off very well in the long term (if PGN has a long term)!
Let me know if I can 'loan' you some shares to short? I have several K that are still in a cash account! Standard rates apply, of course. I won't call them back until the short cover panic is in full swing.....
I will wait until that is the case and then pull back my substantial number of shares from my cash accounts that they are currently paying me double digits to borrow. Good for them to have plenty of rope....for now. It has been fun accumulating shares at the 1.60-1.70 range. This is going to be a long term upward move for PLUG!
May be a fool, but, I see several ways PGN can pull out of this tailspin! Not saying they would do so, but, $10m of their cash would buy back 30m shares or 40% of the shares outstanding at current price. Similarly, open market purchases of their bonds would reduce debt at a huge discount! I am now thinking BK is not their current focus. My position sell out yesterday at $0.46 was a knee jerk reaction, but, it has put me back in the stock several $K below where I was. Good luck longs!
Talk about a devoted 'short side' proponent changing their tune!
Correction...I used PGN symbol instead of PLUG in the above post! Both companies are on and have been on the Reg SHO list for an extended period! I also believe PLUG has a great future and am Long the stock!
'catch them at it and turn them in' is a nice thought, however, turn them in to where? The industry 'self appointed, self monitoring' FINRA group who has no incentive or ability to enforce anything. FINRA simply compiles data that is 'voluntarily' reported daily by the industry. The 'SEC' is just another government organization that should enforce, but, the pay is the same whether they do or not. If you really want to begin to understand the issues, wade through the 334 pages that describe Reg SHO rules. You quickly will discover that there are a bunch of 'rules' (not laws) that the industry has agreed to. You will also note that for every rule there are multiple exceptions and loopholes to ignore them. If you or your broker are found 'in violation' of a rule, then what? You are given 4 to 6 business days to correct or find the appropriate excuse or loophole that covers/justifies the violation. The penalty for violating the rules....nothing except you might not be permitted to short more of that particular security until you happen to correct your failure to deliver. The Reg SHO is a very interesting tool. A security is put on the Reg SHO list after five consecutive days of 0.5%(or greater) of the short trading volume has failed to deliver.(is naked). The security stays on the list until the situation is corrected. Stocks such as PGN have been on the list for months. The consequences for those in violation....nothing! The reg SHO lists is hundreds of securities long! This is just a snippet for your enjoyment. It really is worth wading into the details if you are active in heavily sho rted securities, such as PGN. Let me close by saying I am far from an expert on Reg SHO, but the above is some of my take after a quick review. Good luck with PGN if you are long, as I am! I think the company has a chance to prosper, because oil will come back, but, how quickly is the $$$ question!
aps, I agree 100% that H2 will be a major fuel in the future. The sooner the better. How quickly it can actually happen is the question. Even with H2 commercially available today, the road to significant acceptance remains tough for the companies attempting to get the concept rolling.
Unfortunately, it a long, long road to commercial reality. More great inventions never get past the laboratory level than make it to a viable commercial stage. Inventors like to invent and improve. Their personalities are always making it work better rather than making it a commercial success. I really do think they have a great breakthrough here, but, their commercialization concepts are undeveloped and naive. Lets hope they can put together a development team that is as talented as their laboratory team.
Hey, ease up on Lee, he only was paid, ah, let me see.........ah......$713K last year plus other incentives.......! Your right...that is BS! I think I see an opportunity for some 'cost out'!
Seems like there has been nothing coming from headquarters since the last major robber share awards! One can only conclude they must have taken the summer off! I have been in the stock long enough to remember when management was actually involved in the day to day operations! Very little communication with shareholders lately? IMO
Today's PLUG Capital announcement was going just fine, and then he has to dribble out the $150m target for 2016! #$%$, Andy, Just hit the $100m goal for 2015, first. Leave some wiggle room for 2016 until you have the final 2015 numbers! What is it that you don't get?