Commiserations to MFS holders. I had BKN which was a bolt from the blue similar to this.
Expected BKN to recover somewhat but sold it last week at 52% less than I paid for it - by far the biggest loss ever. A far cry from your profit, Prospector, even though I know you gave back considerable paper profit.
Thankfully I sold MFS late last year.
Hope you get at least an interim bounce for those who want to get out.
well i bought PEM at 3.40 and sold at 1.93 after believing it would turn around,. I sold and I am glad because they have dropped anothe 20c and they are still going down....Commiserations to MFS holders. I had BKN which was a bolt from the blue similar to this.
Expected BKN to recover somewhat but sold it last week at 52% less than I paid for it - by far the biggest loss ever. A far cry from your profit, Prospector, even though I know you gave back considerable paper profit.
Thankfully I sold MFS late last year.
Hope you get at least an interim bounce for those who want to get out.
I am left holding 6500 averaging in at $2.77...but sold 12000 at $4.60 months ago.After that they went over $6...sounds pretty good now,at the time I thought that I timed it very badly.
When I went for a walk with my dog last night I asked him what he thought of the MFS demise and he said that the only positive that he could see was that for every seller there is a buyer....and unless there is an unexpected change that they have to be dreaming if they want to raise $550 million from shareholders.
The dog was born blind,but he has other attributes...a moist and tender Coles chicken for him today.
There may be more sellers than buyers at times, so not quite true that for every seller there is a buyer - your dog needs a re-think.
On further checking information it appears that MFS is roughtly about $1 bill in debt and not just the $150 mill they have to pay up on in a few months. Its amazing how cocky management was/is to accumulate assets by incurring such incredible liabilities. It doesn't make any sense really except to call it 'greed' to be the biggest.
Hopefully management does not need to rely on the $500,000 raising as they obviously won't be able to do it and announcing this prospective raising has spooked its investors and caused the panic selling. Some brokers apparently are telling their clients that it will all be ok and not to sell. I can't help wondering if these brokers are receiving commissions from MFS or some personal agenda in giving this advice, or maybe they are simply right on.
I am wanting to think all will be well and the panic is unwarranted - the SP is terrible relative to what it was but that will not affect the company's performance at all except for the fact that capital raising by issuing more shares won't be an option in these circumstances. I hope that they don't depend on this for their continuing viability, my goodness what a shock.
There may be more sellers than buyers at times, so not quite true that for every seller there is a buyer - your dog needs a re-think.
On further checking information it appears that MFS is roughtly about $1 bill in debt and not just the $150 mill they have to pay up on in a few months. Its amazing how cocky management was/is to accumulate assets by incurring such incredible liabilities. It doesn't make any sense really except to call it 'greed' to be the biggest.
Hopefully management does not need to rely on the $500,000 raising as they obviously won't be able to do it and announcing this prospective raising has spooked its investors and caused the panic selling. Some brokers apparently are telling their clients that it will all be ok and not to sell. I can't help wondering if these brokers are receiving commissions from MFS or some personal agenda in giving this advice, or maybe they are simply right on.
I am wanting to think all will be well and the panic is unwarranted - the SP is terrible relative to what it was but that will not affect the company's performance at all except for the fact that capital raising by issuing more shares won't be an option in these circumstances. I hope that they don't depend on this for their continuing viability, my goodness what a shock.
Guys, lets get the facts correct please.
They have never hidden the fact that they have 1.4 to 1.5 bn debt. That only matures between 2010 & 2012. The 150 mil matures in a few weeks and they can pay that with cash. So, please don't compare these guys to Centro of Rams as they are nothing alike.
The entitlements issue is so that Stella can pay back MFS whatever they owe them. It makes for a clean separation of the two entities and makes any mergers or sell, be they with City Pacific or anyone else easier to execute as their finances wont be all mixed up.
There is no issue at all here. Even with Barclays doing a bit of a sell off, i wouldn't be surprised if they Merrill or UBS bought back in at a discounted price on all the panic.
Guys, lets get the facts correct please.
They have never hidden the fact that they have 1.4 to 1.5 bn debt. That only matures between 2010 & 2012. The 150 mil matures in a few weeks and they can pay that with cash. So, please don't compare these guys to Centro of Rams as they are nothing alike.
The entitlements issue is so that Stella can pay back MFS whatever they owe them. It makes for a clean separation of the two entities and makes any mergers or sell, be they with City Pacific or anyone else easier to execute as their finances wont be all mixed up.
There is no issue at all here. Even with Barclays doing a bit of a sell off, i wouldn't be surprised if they Merrill or UBS bought back in at a discounted price on all the panic.
If it makes you feel any better (probably notI bought only 1000 at $3.40 very recently and am in total shock and what has happened. I did some quick research before buying and did not find anything to warn me about what was to happen today! Amazing and awful.
I almost bought more at .70c but was too busy and then when I had a minute to spare they were up to 99c again and then I was too uncertain and decided to leave them alone and just hope my $3.40 shares one day pick up
I am sure within any financial loan contract there is a line which says the loan is payable on demand if circumstances arise. If ever the environment was ripe for a 'payable on demand' demand, then methinks maybe this is what is happening! Just myand with no knowledge to back any of this up.
how I'd like to think of it is. why would a loan be called forward and then the financial institution possibly taking a discount rate to get their loan back, because the chances of MFS repaying the complete loan in full would be low.
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