"Idiots on parade here."
Pretty weak, Dana.
Name calling is a sure sign that you're losing the argument.
USU appears to have a short-term floor under it of about $3.20. Yesterday it closed at $3.32, up 11 cents in a down market. But I just can't force myself to buy it here since my guess is that it will sell off after the pending 1-for-10 reverse split.
"This has not diminished the zeal of those that would use the planetary wellness issue to bludgeon Americans into submission. It's not about the money to the EPA; it's about control of Americans, not control of pollution."
It's all about careers. When you've invested your life work in a field, the last thing you want is for the goal to be reached. That's why we still have the war on drugs, racial preference programs, archaic teaching methods in schools, the fascists running the EPA, etc.
The foundation has rejected . . . . requests to disclose its source of funding."
Why on Mother Earth would they disclose their funding and risk having crazies, with whom a reasoned civil dialogue is impossible, dump on their front lawns?
Ace, since you like Walgreen, go there and buy yourself some suppositories. You need them, I'm sure.
I'm in since the years of pain and have seen a large percentage unrealized loss reversed. Patience has won the day for me.
And, "Thank you, Goldman Sachs."
What, this is not all settled science? But the Senate Democrats just spent all night telling me that the debate has ended and that we're all going to be toasted if we don't convert exclusively to a solar-powered battery lifestyle.
May you be so lucky as to become an old fella some day. And may you collect a little wisdom along the way.
"big money is behind the denialists . . . ."
What, and there are no financial incentives for the global warming alarmists who constantly seek more money for their gun-decked data gathering, and conferences in distant locales?
Dana, go get a job.
You can look at the $3.65 price on USU and think that the bonds must be worth about $779. That's about 145 (pre-1-for-10 reverse split) shares at $3.65 plus one new bond worth about $250.
Or you can look at the bond price of 40 and say that the USU shares are really worth about $1.03. That's $400 per 2014 bond, less $250 assumed value per new bond. That leaves $150 attributable to the stock, divided by 145.
Somebody can check my math, then take your pick. The truth probably lies somewhere in between.
The management incentive plan will affect both the current shareholders (with a new ~5%) and the 2014 bond holders (with a new ~79%) proportionally. For a straight 79%, the bond holders would receive 146.7 new shares, but I have been using 145 for my working number. As I have written before, it may be closer to 135 or so new shares per each 2014 bond, depending on how greedy management is.
From my experience bankruptcy lawyers sell Chapter 11 plans to management using the promise of newly priced stock options as an incentive to get management to bite the bullet. Philosophically, I think the courts should ban such rewards. Let the incompetent managers who ran companies like Usec into the ground go collect unemployment.
"Per the pending restructuring agreement the bondholder get 200 million cash . . . ."
No, not cash. It's $200 million in new 8% bonds, maturing in five years, or maybe 10 ten years in certain circumstances, with the Company able to pay some of the interest as PIKs (i.e., more bonds) at its option.
These new bonds will never trade at par except on the day they mature. So you need to determine what they're really worth and it's not $200 million. Way less.
Other than that, mom, I sorta agree with you concerning the value of the 2014 bonds.
So, we didn't have my predicted rally to 50 or better, but at least we didn't crater either.
This situation will be interesting for the next 120 days, though I need to spend one heck of lot less time looking at the computer screen than I did today!
After a little volatility at the open, the shares traded in an amazingly narrow range. Maybe the company worked leaned on the NYSE specialist. There must be some sort of explanation that goes beyond mere free market buying and selling.
Whatever, that may also provide a clue concerning whether the share price craters further from here.
Look again: 4:13 PM, 10 @ 41.020 (Customer Buy).
Hopefully Schwab and e-trade will price this at 39 or better in the overnight valuation reports. Usually they low-ball it. (My ego needs constant reinforcement.)
"well this was a wast of time covered @ 4.35 sad"
Please let me extend my condolences to you and the other bereaved members of the Short family.
Your broker was wrong last year when you wrote essentially the same thing. Why should their opinion be believed now?
Par on the new bond will be 37.7 (per old bond). Then add about 145 shares of USU, currently trading at something north of $4, for a total value per 2014 bond of $957. So, I'll agree with you, something is clearly out of whack. The risk arbs don't like the deal (yet) for a bunch of reasons.
I also think that the new bonds are unlikely to trade at par. And the common may well trade lower, especially when it hits the pinks.
I just think your 50-cent price is too pessimistic.
For the record, I did buy bonds today at the open and like the risk-reward ratio.
But what do I know.