Ron, thanks for thoughtful post.
It is clear that inst. guys got pissed at FNV and those who are really pissed probably sold most in 20s and teens.
It seems short position have increased also.
When the volume dries up a bit, possible short squeeze....
From the sources, as far as I know, there wouldn't be any more surprises and the company is still in good shape.
>>Which came first, the write off or Sam's firing?<<
Sam got fired? Who fired him?
The way I read, 70mil did NOT have to be write off at once like this.
Financial community knew this was a troubled loan and FNV made reserve for about half the amount of the loan.
Plus FNV have collateral which is at least half the loan amount.
Even if FNV fire sale those collateral, they should be able to recover at least 25%.
So... the question is why the hell FNV decided to write off all 70 mil at once and shock the financial community like this?
My conclusion is because of Matt. I believe he really wanted to start with clean balance sheet, who wouldn't?
By writing off the biggest headache,
1. The company's earning will be better in coming years.
2. And Matt starts with LOW stock price, and most likely it will go up over the time.
Just think about it, better earning, better stock price,... he will look like a savior in about a year...
I'll bet he'll have a nice stock option plan, too....
IF this was his plan, then he certainly achieved the goal.
But I think he could have done it with better style though...
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