Dropping to $1.80 was about them being late on their 10K. I bought that one too. Once it came out, Yan said he was resigning, and the company said it initiated the re-certification process the pps recovered. The market overreaction wasn't all about the LS. All the material items the LS implied have been dealt with. The last one being no customers have left. The LS is now just a technicality. Getting rid of it now will be a good thing right now but if not it will go away eventually.
Obviously if it settles it's going to be huge deal. But I wouldn't bank on it. 2 pretrials is a bit odd so the judge must have seen that given an extra month they might have been able to work something out hence the extra pre trial conference. I'm pretty sure that at anytime they could have settled and made a joint motion to dismiss but nothing of the sort has been filed. So I'm not really all that confident in a settlement tomorrow. I suppose the good news in that regard is that there have been no motions at all since the pre trial. No more summons. No more requests. No more name calling. So maybe the quiet period does mean something. What I do know is that the LS is hurting shareholders and the company and that means pressure is being placed on the parties to settle. Hauser is paying a firm to represent her and that costs a lot of money. She's going up against one of the best firms in Ohio Does she really want to take it all the way? Yan is resigning and much of her case is aimed squarely at him being an #$%$. So most of that part of the case is already settled. As for the 2 production days of alleged UL certification problems, the company has went through all their inventory with a fine toothed comb and paid a lot to do it. GL trying to prove 2 days were missed. Especially if WM HD won't play with her. She can't win. She's going to put up a lot of money to prove she can't win. At some point her attorney will advise her to drop it or settle. But that may not come tomorrow.
Personally I don't play events. I play value. So I'm not going to be upset if the pre trial results in a court date being set. I know it will end eventually and it won't be all that far off. I also know earnings will continue to get better and there is nothing Hauser can do about that. If there is no settlment and the pps drop significantly I'll just buy more. Just like I bought when the suit was filed. And I'll sit and wait some more. No problem.
I'm happy to hold even after that. Housing market is up and Home Depot is selling lots of light bulbs for new houses. So even after the Hauser LS is settled, class action buried, new ceo appointed, and Hauser is working for McDonald's as chief fry cook, this investment is still solid as new growth earnings continue to pour in in the midst of a healthy housing boom. Day Traders will come and go and likely not make much if anything. They really are worthless noise. These are the same ppl that sold out their whole position at $2.30.
He's lying. he's saying bulbs were recalled because they failed UL and therefore are illegal to sell. And so they decided to sell them at a dollar store as if that makes it legal now lol. The guy is an idiot who probably sold too soon or got caught short. lets move along.
Might get a run up on speculation to 5/29. If there is going to be a settlement it will be then. If it settles, say goodbye to that train.
Yan talked about it in the call. They want an independent director added to the BoD.
The Hauser LS will go away eventually. Obviously, the sooner the better but pressure will build to settle it now that Yan is out as CEO. Regarding the other LS, the class action LS, needed a lead plaintiff by May 1. I didn't see anything posted yet on that case but expect something Monday, hopefully a dismissal. One more catalyst to add to the near future will be the appointment of a new CEO. The market generally likes knowing who the CEO is going to be so I think that could be a bump as well. I think all issues will be worked out and a new CEO will be appointed by mid summer and at that point the company will continue where it left off before the LS was filed. So regardless of LS timelines and blips in earnings I'm likely holding through the summer and maybe even through the year. I wouldn't mind picking up long term capital gains tax rate for this one.
Q1 earnings will be the next big catalyst. If they continue growth without any issues from existing customers this will pop.
As far as I can tell they still haven't served Yan yet. The company will surely just settle with no admission of wrong doing of course. But exactly when tht happens I don't know. As for the class action, May 1 is the deadline for a lead plaintiff and as far as I can tell they don't have one yet so that could be dismissed. Next up is Q1 earnings.
Ahh good point about one less competitor. I just read up on FNRG and you're right it is a scam. Probably headed to BK now. TCPI will recover once the market realizes it's not a scam company. Stupid algos need better reading comprehension built in lol.
Sentiment: Strong Buy
The FNRG issue seems centered around the CEO getting arrested which may have nothing to do with the company anyway. So this will recover. Great buying opportunity. I'm already all-in on this one at $2.00 so not going to add anymore myself.
hah really? I'm amazed that ppl still think TCPI is a Chinese company. That's going to burn many when it pops back up after the market realizes it isn't.