They don't have the capital to buy back stock. However, the lack of any insider buying on the open market is remarkable, and concerning. Not a single manager or board member has bought any stock during this move from 70 to 16. CEO talks bout a disconnect in the market.......where is he putting his 1.4 million in compensation? By the way, executive compensation is completely out of line at this company. Your best bet is an activist investor comes in and forces change. This weeks weakness is probably very much related to the Russel 2000 re balancing. I see a trade here.
Anyone here using the app besides me? If so would like your feedback! If this service gains traction in the enterprise, BVSN could be a steal at this price, obviously.....trading at less than cash, with significant NOLs, IP, and a 20 year customer roster. Waiting to hear some buzz on traction. In a world of billion dollar startups, the potential is remarkable !
NOLs would not carryover in a change of control. But they would quite valuable if BVSN hits on something and turns profitable.
another 450,000 shares today. They will have to sell shares in the open market cause they cannot own 10% of the company at any given time. The company will use stock for for this convert for sure, as the debt offer was just a cover for massive dilution. Could be 5 million shares+ or a lot more if 3.50 fails.. Tomz and CowenCo should be nailed to the cross, as arbitrage locks the stock down, and the company dilutes at 3.5 nonstop. Glad Kodak is done with these charlatans. At some point in his career, CEO Tomz will be convicted of a securities crime.
I will give Wehr hi marks for the call. To say it was important to assure all stakeholders of solvency, and restore some confidence in the marketplace is being conservative....
Short sellers were very active Thursday and Friday. PFX, the bonds, traded 1/2 there volume to the short side. That's a very hi ratio, but the meltdown naturally attracted bears and short term traders on the short side..PNX also attracted short sellers the last 2 days. about 1/3 of trades were short sales. Short interest is going up! It effected the trading significantly the last few days, as they hammered any type of rally attempt. In a illiquid stock, shorts can be devastating. Trust me. I know cause i short my share of stocks.
Whats your opinion on the week ahead? Some catastrophic event and single digits, or or a relief rally assuming they release there numbers. The stock trade last week as if the place was gonna shut down!
This company can earn its entire market cap(100 mill) in one year. They have very manageable debt. But the spec tor of significant financial risk looms overhead. Its a hi risk/hi reward situation. Declining restatement expense and higher rates could return the company to the black in 2 qrts. So what gives? Did something leak ahead of the qrtly? Is capital and or liquidity compromised? Are they shopping for capital? Is there a staggering event forthcoming. Did the CEO just plain create a run on the bank via his incompetence and lack of leadership? Or does a severe lack of liquidity in the securities exaggerate things .? I have never seen a company blow itself up on CPA , Auditor, and legal expense......can it be possible they did?
CC today they mentioned engineering expense is declining now.. Aside from a tiny royalty, they will book all the revenue going forward. They sounded happy about it. Are they are committed going forward to copper..hard to tell..
Yield to maturity is 12.3%! Higher if called! Since its a Quib, and pays every
3 months(very nice), the actual compounded effective yield is even higher, assuming you can reinvest that coupon smartly! It works very very nice.......if you get paid!' Lol that's a big if!
Co should make a comment as suspicions mount, or release the qrty.! Stock has lost half its value in one week but much more concerning is the nasty sell off in the bonds IMO !
I would love to see a hedge fund get involved here. They LOVE annuity companies. There is way too much legacy here. Too much complacency. From the Board to the senior managers..too many lifers. Boat Building, Charities, defined pension plans, terrible governance, cronyism, etc etc. CEO takes 5 years to address "material weakness". Please. Get off the golf course. I would support an activist that turns the whole thing upside down..there could be value here if its not too late, but this Hartford legacy needs to be blown up.imo.
Lets not arrange this funeral just yet. Statutory surplus stood at 752 miil at Qrt end, up from last year. Insurance Co had net income of 133 million in 2014, so they improved both capital and earnings. The one offs and operating expense level at the holding co is of concern for sure. Liquidity and capital look less than adequate, but not mortal by any means. I bought some senior debt today. YTM is close to 10% with 5 points to par.The biggest risk I see right now is dilution, as in a capital raise. That would benefit the policy holders, the bondholders, and management. Stock holders would suffer significant dilution at these prices. I do think they could get capital if they had to. Perhaps the market sniffed out that possibility the last few weeks.Watch the bonds. If they trade down to 50 or 60 cents, then you can handicap event risk. Stock was a very good trade last time around 20 , but book was 160 and they had better liquidity at the Holding Co. The lack of liquidity makes for intrigue in price. Why the debt traded above par a few months ago..i still cant figure. So I dumped it all. But its interesting at 20 or below.