Not a great offering
Moderators: sky's the limit, sepia, Sulako, lilfssister, North Shore, I WAS Birddog
-
Flightlevels
- Rank 7
- Posts: 703
- Joined: Sun Feb 29, 2004 7:16 pm
-
Brick Head
- Rank 8
- Posts: 882
- Joined: Fri Jul 22, 2005 4:37 pm
Re: Not a great offering
Well yeah. 
I mean 2 months and 6 days past the latest bankruptcy deadline and I am surprised anyone bought anything.
The dealers managed to sell off anywhere from 130-175 million in the first few days.
Gotta give credit where credit is due. That isn't an easy sell.
AC's financial position is trending better. Not just its liquidity position. AC's stock is sitting just barely above bankruptcy valuations at the moment. It goes to 3 bucks? They double their money.
Doesn't help much for those who bought at 20 bucks.
Honestly I think this was a very very good move by AC. With the amount of shares being offered the share price normally should have dropped by more than half. Not when you are in the toilet already though.
I mean 2 months and 6 days past the latest bankruptcy deadline and I am surprised anyone bought anything.
The dealers managed to sell off anywhere from 130-175 million in the first few days.
Gotta give credit where credit is due. That isn't an easy sell.
AC's financial position is trending better. Not just its liquidity position. AC's stock is sitting just barely above bankruptcy valuations at the moment. It goes to 3 bucks? They double their money.
Doesn't help much for those who bought at 20 bucks.
Honestly I think this was a very very good move by AC. With the amount of shares being offered the share price normally should have dropped by more than half. Not when you are in the toilet already though.
-
tonysoprano
- Rank 10
- Posts: 2589
- Joined: Mon Jul 18, 2005 7:01 pm
Re: Not a great offering
Hey Flightlevels, I have a great offering for you:
http://www.youtube.com/watch?v=nULKw8s061E
http://www.youtube.com/watch?v=nULKw8s061E
-
TyrellCorp
- Rank 3
- Posts: 154
- Joined: Fri Sep 14, 2007 6:56 am
- Location: Why Why Zed
Re: Not a great offering
Hahahaha! I love it! Good one Tony. My sentiments exactly.tonysoprano wrote:Hey Flightlevels, I have a great offering for you:
http://www.youtube.com/watch?v=nULKw8s061E
Hey Flightlevels, why don't you just go play in your own sandbox. Oh! What's that? You got kicked out of your own sandbox for being a mega jerk? Why doesn't that surprise me?
In all seriousness, just remember that as you are relishing the misfortunes of another, you too are in this finicky business. As strong as you think your empire is, mightier ones have fallen. Not that I wish that on anyone. Have a nice day!
"Nothing is worse than having an itch you can never scratch"
-
Flightlevels
- Rank 7
- Posts: 703
- Joined: Sun Feb 29, 2004 7:16 pm
Re: Not a great offering
hook line and sinker Tyrell! (always count on Tony biting - no challenge there)Re: Not a great offering
Pretty sure that if it goes to $3 Calin triples his money.AC's stock is sitting just barely above bankruptcy valuations at the moment. It goes to 3 bucks? They double their money.
Re: Not a great offering
Forgive me if I'm missing something here but,,,,,,,,,,,,,,,,,,,,
I was under the impression that ACE owned a majority share (75%) in AC. If that is the case how can AC sell more shares of itself when that property was owned by ACE. And if that is the case wouldn't the proceeds of a stock sale in AC belong to ACE as they are the ones that would have owned the stock that was sold,,, wouldn't they
Feebles minds would loke to know.
I was under the impression that ACE owned a majority share (75%) in AC. If that is the case how can AC sell more shares of itself when that property was owned by ACE. And if that is the case wouldn't the proceeds of a stock sale in AC belong to ACE as they are the ones that would have owned the stock that was sold,,, wouldn't they
Feebles minds would loke to know.
Brick Head wrote:Well yeah.
Honestly I think this was a very very good move by AC. With the amount of shares being offered the share price normally should have dropped by more than half. Not when you are in the toilet already though.
-
Brick Head
- Rank 8
- Posts: 882
- Joined: Fri Jul 22, 2005 4:37 pm
Re: Not a great offering
Nope,
AC can print shares as they see fit. ACE controls what AC does through the BOD. So ACE obviously agreed to this. Maybe even instigated it. 25% of a company that survives is better than 75% of one that is bankrupt. ACE also wants to wind up. Becoming a smaller player in all of this may been seen by them as way to depart the fix with the cash they have left without looking like a thief in the night. Then take whatever the AC shares are worth as it comes. Who knows. Either way ACE apparently will still control the BOD at 24% at least for now
The dilution before us right now is nothing compared to what will happen if the stock hits $2.20 and those warrants are exercised. The outstanding shares will roughly double again. ACE's ownership will be diluted to about 12%. It looks like the employees 15% will be diluted to around 5% for now. Possibly 2.5% if the warrants are exercised. The last comment is assuming the employees don't have protection against dilution. I doubt they do. No shareholder does.
AC can print shares as they see fit. ACE controls what AC does through the BOD. So ACE obviously agreed to this. Maybe even instigated it. 25% of a company that survives is better than 75% of one that is bankrupt. ACE also wants to wind up. Becoming a smaller player in all of this may been seen by them as way to depart the fix with the cash they have left without looking like a thief in the night. Then take whatever the AC shares are worth as it comes. Who knows. Either way ACE apparently will still control the BOD at 24% at least for now
The dilution before us right now is nothing compared to what will happen if the stock hits $2.20 and those warrants are exercised. The outstanding shares will roughly double again. ACE's ownership will be diluted to about 12%. It looks like the employees 15% will be diluted to around 5% for now. Possibly 2.5% if the warrants are exercised. The last comment is assuming the employees don't have protection against dilution. I doubt they do. No shareholder does.
