I presume he is being brought on because he may have access to some potential deals.
There really isn't anything to report right now. Ive seen these kind of shells go on for a year or so before finding something to invest in.
The right deal is more important than a quick deal.
Becker Drapkin has a lot invested here. I think we will all make money in the long run.
Nice to see it up to $1.24 today. Was there an SEC filing that I missed ?
And HLF has a marketcap of $6 billion but its a total fraud company.
Neither has anything to do with BH. And its egomaniac ceo.
It does NOT dilute. You gain as much as you lose. We are buying shares at $250 which is below book value so are only diluted if you don't participate or you own say 4 shares which wouldn't entitle you to a right.
We are on the same footing as insiders so its fair to everyone. Except those who do nothing. Or own lots not equally divisible by 5 I guess.
Manhattan Bridge Capital jumps after secondary offering postponed
Shares of Manhattan Bridge Capital (LOAN) are rising significantly in early trading after the company postponed its planned secondary offering of 2.83M shares. The deal, which is being run by Aegis, had been planned for a Thursday night pricing but has been postponed. The offering may come next week, but that is unconfirmed. Shares of Manhattan Bridge Capital are up over 33% to $3.21 in early trading following the postponement.
They are going to make their 9-11% but then they are also looking to make as much as possible off the shares.
All Ran can really do is give them a minimum price in which he would sell and for all we know he told them $2.00.
If they know they can buy for a 9-10% discount from $2, shouldn't they be selling/shorting at $2.40 ?
Similarly, if a boatload is going to be sold for $2 including commission, why buy now ?
What, if anything, was said during the annual meeting ? Stock sure seemed to tank around that time.
If the CEO would resign or this went to a single class structure, the stock would go up 30% right away.
Its not going to happen.
He isn't giving up control no matter how much he is hurting the rest of us.
And I wouldn't rule out some kind of sweetheart deal where he sells his control state for a premium and the rest of us get the shaft.
I have more respect for shoplifters than this CEO.
It doesn't dilute anyone who buys more. And if you don't, you can sell your right and get something out of it.
Last time I even got 1 overallotment share. So someone else did nothing and I benefited.
Anyone who exercises is not diluted. Except to the extent they don't have a lot evenly divisible by 5.
Rights offerings are the most fair way to raise capital.
A below market secondary or private placement would be much more costly and dilutive to current holders.
Still, I don't see the need for a yearly rights offering.
COVERAGE REITERATED: Hercules Offshore (HERO) reiterated by Howard Weil. Reiterated rating Sector Outperform.
So...if we trade at 15 x $1.21=$18.15
And next year if we trade at 15x $1.43=$21.45.
I think they have a chance to earn $1.50 THIS year. But regardless, the stock seems cheap at $14.87.
And don't forget, we get a healthy dividend while we wait.
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 ?