There has been constant buying all morning. While short interest is not terribly high...someones are accumulating either on knowledge about something or speculating on what can possibly happen.
Sentiment: Strong Buy
what is clear is mgt commitment to LTC. Wall street does not want this and thus has throw out the stock. The question is what is fair value at this point. Mgt wants to keep their jobs and shareholders want to be rewarded and they haven't been. inflection point is drawing near IMHO
we may be reading between the lines so to speak but mgt would not do this unless they expected a restructuring of some sort. They are protecting themselves from lawsuits but the reincorporation also allows potential acquirers easy to pursue. Wall street sees this hence the bump in sp. If they decide to go private at $10 bucks you can bet a lot of shareholders that bought at higher prices would file claims. Right now I believe the sentiment is that something is going on that we don't know about.....which is different then the status quo mentioned on the last call. it maybe something or may not. recent Waves of pessimism were excessive IMHO so we are due for the pendulum to swing the other way. At least I hope so!
the 8k is everything. company is planning on actually DOING something.....that is what wall street tis reading into it. That is all. Anything is better then the status quo for the past 5 years hence the share price rise.
This should not be a public company the way it is currently organized. Mgt finally sees this. Levereged buyout or private equity take private. who knows. just speculating right but this action is loud and clear something is in the works.
yes....that is what I am reading to. It makes it easier for an acquirer and limits liability of management. One would not do this if they were not planning on something big. For example a take over at 12 bucks might get them some lawsuits from shareholders that wanted a higher price.
this quarters earnings will not be good so I see the shorts attacking it once more and covering into any weakness. 6 months from now the costs savings should be reflected in earnings.
The whole short premise was flawed in the first place. Earnings are not important in the short run. Cash flow from operations are. the company is deleveraging and righting the ship. Bottomline is it was overvalued at 60 and is extremely undervalued at 7. 15 bucks is fair value right now and that may increase if they show some growth and a right sizing of operating margins.
Money flow is positive which is more than I can say for a lot of stocks right now. Tutes are buying today.. lets see if it continues.
This frees up capital...without dilution. I would love to see a 100 million buyback at these levels.
Yes....it might just be for a trade into earnings.....but hopefully stronger hands prevail and realize that Hopefully most of the worst news is behind us. I would be find with a 8 P/E right now.