With so many winners this year, anyone who needs a tax loss and owns MRGE (almost everybody who owns MRGE) will sell this pig. Should test $2 easily when the deluge of selling comes in.
He has his hands full trying to generate some revenue in the consulting business and is looking at only the trees; there is also a forest, which is their huge tax asset and the working capital on the balance sheet that could generate as much earnings (or perhaps more) than the current business model. He needs someone to focus full time on "shareholder value".
However, given the number of groupings who own 7, 8 % etc., even with the poison pill, he could be out of there if he doesn't start paying attention to creating value. This stock is dead.
If this closes below $16.06 they have taken out a 2 year support level!!
In all likelihood they won't even file a Chapter 11 (since they are not reorganizing)...so in a Chapter 7 they will probably try and sell the "shell" at some point in time for $50,000 (if it is relatively clean)...so current shareholders will own stock worth perhaps 1/10 of a penny, if that much. I have no idea what Ordway was thinking or whether he understands fully-secured loan agreements??
This went down big-time with huge volume a while back and now has crawled up from its lows on light volume. Wonder what gives?? If it were anything "big time" one would expect large volume to accompany the move??
I am sure that the interview accounted for some big hitters getting into the stock today. The volume and price just took off like a rocket around 1:30 or so. I know you are not allowed to reproduced material from WST, but does anyone know where you can get a "freebie" on it?? Would love to read what it said.
I think your gut instincts about what they have done with the IP assets is 100% spot on. The whole thing stinks and it is MY OPINION that this should be investigated. It is MY OPINION that there has been illegal self-dealing.
IN MY OPINION getting one of these is the biggest red flag in the World. Someone paid $1.75 million to do this newsletter so they are clearly expecting to pump out millions of shares to the poor dupes who believe the #$%$ in this legitimate-looking "report." Amazing these people are not all in jail.
They haven't yet figured out that nobody is going to pay over $9 at the tops (now that it has been established, and they would have to pay $9.30-$9.50 with the breakup fee.) There is an agreement in place so Blackberry cannot sell the pieces!! Stock drops to $7.60, then pops to $8.50 on rumors....people buy, stock drops back to $7.50. Bagholders and suckers all.
Then he will go to trial on his "flashing" charges.