up 10/down 10 We are all prisoners to that. Once the RIC status is confirmed they should be selling all the liquid holdings. I am sure they are thinking of ways to screw the stockholders but that is going to be tempered by their need for a good rep for future investors.
not sure it will be dead for long. Just started looking. Wunderlich thinks it is worth 20. That looks like a very powerful BOD. They all know the game. I am really intrigued but do not own it currently.
No matter what one thinks of CASM, the underwriter really stepped up and got the job done. All kudos to them. An employee owned firm out of Minneapolis, these guys made the white shoe NYC bankers loo like also rans.
I am surprised they got the deal done. Pay attention and see if the over allotment was exercised..
Good luck! At least there is now some breathing room.
I think the CEO came in thinking he could shake the place up and then sell the company. He got bogged down. I think he was trying to hit a home run just like he did in his previous job. The jury is out on whether he can actually build a business. His hand picked VP Sales didn't work out and he has had other issues. As he failed to build scale in a timely manner his competition got stronger. The legacy business seems to be heading downhill. It is now a drag rather than a contributor.
My bottom line: Jury is still out but the defendant has a very guilty look. If the UW prices this deal in the toilet I would buy it for a trade.
Looks like they really need the money. I think they are way behind in their cash flow projections. The legacy side of the business looks terrible. I assume the deal gets priced to sell. Look out below!
I would suggest it is time to divest/close the legacy business and find a stronger partner for Oximitry. There are more and stronger players in the marketplace and CASM is too small to compete. I do not question the product. I doubt the ability of the current balance sheet to get the job done.
If you don't want to go all in make a synthetic convert. Buy some bonds and sprinkle some equity in with it.
The bonds yield 11+.
Their hedges give them staying power. However it might preclude some takeover interest as the assets hedged are worth a lot more.
I would be buying back units where possible as the market is cheaper way to increase value than the drill bit.
Distress sales may change the equation but it will take a bit before reality sets in.
I think the banks re determinations will be the last straw for many but that is a quarter or 2 quarters away.
I don't think the announcement was all that positive. Sales flat, traditional business falling away, lots of noise from the competition does not make me a happy camper.
I think EFC among "best in class" for this sector. The sector is under pressure. Yes, I own it and think it will eventually work its way higher.
Interest rate worries and sector dividend cuts are holding prices. Book values have increased in most cases but the mkt refuses to increase price to reflect that reality.
I won't be soon or fast but I think EFC is a keeper..