After strong sales.
2nd half will be better earnings wise.
1 Street estimate shows $1.21 for this year and $1.43 for next.
Wetnash was right. I never should have bought at $2.26-2.76 back n 08 and 09.
Im just a failure as an investor.
I just figured it using the most dilutive share count and got $5.274 book value.
That's $853,561 divided by 161,839 shares.
I always use the most dilutive share count because its more conservative.
Had a limit order in from when I saw the insider buying at $4ish.
I owned this in the past and made money 3 times.
My prior buys were at lower prices, $3.06, $2.49 and $3.18. And I sold out at $4.74, $4.79 and $4.88.
Frankly, I had thought I paid more in the past bur regardless, it has a nice cluster of insiders buy just over $4 last month, So I would think my chances of at least a $1 move on the upside are good over the next 3-12 months.
Because ALL shareholders have equal rights. Everyone can buy more. And those that don't can sell their rights and get something for them anyway.
My problem is not with the fairness of rights offerings. My question is how come he cant live with the very large amount of capital & cash flow he currently has ?
Why does he need more, apparently EVERY year ?
Its fundamentally fair to everyone equally but when is enough ? Is he going to raise money every year forever with below market rights offerings ?
What if he starts doing them every 6 months ?
How much is enough ?
Becker Drapkin made several times their money and they are in the investment business. So set aside their selling.
Now, count the other insider buys. Are there 5-6 different insiders that have bought ?
All because they and a 70 year old respected CEO wants to con wall street ?
I don't buy it. I think there is a chance that the stock goes to $25-30+.
But, theres also a chance the stock goes down if the market does or they don't have a very good x-mas.
So Im fully aware of the downside risk. Im not sure you are fully aware of yours if you are short.
Did you re-short after covering ?
I know there can be some game playing when it comes to dividends but I didn't think they would take up a stock a buck or so over a 7 cent dividend.
I presume the underwriter is controlling the stock because they stand more to gain by doing so.
Id love it if the stock could go back up so LOAN could sell shares at higher prices. And Id love it if the market would award it a 5% dividend. Im just not sure how realistic that is.
Id sell out at a 5% dividend, Id hold for a 10% dividend.
I don't know enough about what other REITS trade for as far as dividends. I only own 2,. FUR & FSP..
FSP has a 6% dividend. FUR is 4.4% but they are liquidating so the regular dividend should stop after the one that just got paid. (I think)
Never would have guessed 5 stores in Bham would mean so much.
But at least I may have a chance to try it.
Although Ive owned steak n shake for years and they have 3 stores in town and I still haven't tried it.
Your Patience may bring you increased losses.
You are betting against a guy that has a good track record of turnarounds, the market seems to believe and the only person who thinks he has "failed" is ltf.
A lot of shorts have to cover. There is not much in the way of overhead resistance and you are facing the very real possibility of 8-10%+ same store sales gains going forward.
So its anything but a slam dunk from the short side.
And you haven't explained why multiple insiders continue to buy. They are all risking their careers on securities fraud ?
One caller asked how accretive the acquisition would be..... Management was not free to answer.
Why wasn't mgmt. free to answer ? Many companies announce that in their PRs.
CFO buys 3000 more also via the 10b5-1 plan. One wonders how much he wants to buy. It wouldn't seem like a 10b5-1 would be needed for 5 or 10k shares.
Common Stock 07/15/2014 P (1) 3,000 A $ 16.49 8,964
But it seems fairly clear that we are going to be diluted in connection with any financing.
They don't even appear to be shopping around for the best deal.
So I fear they are going to end up paying 16-18% interest with a convertible kicker at maybe $1.
And I don't have a whole lot of confidence that even with the extra financing that everything will be great on the operations side.
The new valuation may or may not be made public and its meaningless without willing & qualified bidders.
So its a crapshoot with a board who couldn't look more incompetent if they tried.
Kicking myself for not selling over $2 when I had the chance.
Its probably worth a chance for newbies.
200-300% potential upside compared to maybe 50% downside.
Either that or the entire thing is a scam & they've been selling shares out the back door for years !
Its a prelim. You will after the final version comes out.
Last year the rights offering shares hit my account on 9/23.
Maybe this year will be sooner because they've done it before.
My problem is why does he always need more & more money ?
He is supposed to be using the cash flow from all his businesses.