rhkohnen.. <<PCSTEL idea is good of trading interest payment for equity over the next 2 years>>
The thing I want people who read this on going debate is the following, It is SPECULATION!! There is absolutely NO PROOF, NO FACTS.. Just someone who has been trying to put the pieces of the jigsaw puzzle together!
I remember everyone's confusion when the tranches stopped at 7 1/4. Everyone was normalized to the routine. To the point that the twice weekly tranch selling seemed to almost cease having much of an effect on the common share price.. Rocket Scientist would provide us with the following days expected sales figure, and it's expected financial proceeds... Sure enough, It's 10AM EST.."And there she goes" Like clockwork.. Only another 14 weeks to go at this rate RS would speculate.. But, then about 3 weeks before the quarterly CC was scheduled, the selling stopped.. "Some speculated", maybe good news is coming, Bernie is trying to prevent excess dilution... Everyone waited... Was there news?? Not a word!!
BLS knew LOR was going to acquire the B of A facility.
And Bernie knew when the Cash on Hand would run out in April/May. In addition, he knew that he was going to make the statement in the WSJ, and he knew the MOU's and revenues, he knew GSTRF would crater..
The question no one can give me a logical answer to is WHY?? WHY, stop the tranch selling.. A company needs money to operate with, even in BK.. Even if you were not going to BK the company, you need funding.. SO WHY STOP?? Bernie knew he was going to make the WSJ statement and that alone would sink this equity.. Why didn't he plow ahead with the tranch sales? He could have probably raised an additional 12 million dollars in the 3 weeks before the Quarterly Report? That's 3 months worth of operational money in BK.. But, NO.. He stopped the tranch selling!! WHY??
Has ole' BLS lost his head.. Senility finally kicking in? You would think most CEO's would be in the cash grab mode at the common's expense, after all, it is going to be worthless in 4 months anyway!! Survival of the fittest they say!! But the selling stopped... And we see no sign of it starting again.. Maybe BLS has flipped!! I don't think so.. You are dealing with one of the shrewdest finance types I have seen as a CEO..
Do don't you think that the "Class Action Litigators" haven't been perching over this thing, like a Vulture over a wounded baby deer? They have been following Bernie's very word. Gone round and round through the Financial Statement's and Public Statements looking for the slightest indication of misinformation? Sure they are? The stock goes from 50 to 2.. And yet not one "Class Action is Filed".. Iridium was filed upon long before this time!! No, you are dealing with a CEO that is operating "within the maximum limits of the Securities Laws" He knows where the line is.. And he walks on it.. But, never trips across it.
Do you see that Mr. Atypical Bondholder...There is 60 million in pre-approved tranch sales that represents CASH that this company could extract from those "lower on the food chain", and sell between now and March, 31 2000.. Everyday another chance to get to some more cash to line your pockets in the end, is passing by!!
If you think you are dealing with a "Typical CEO", I think you are mistaken", He is "Atypical". And you are betting against the "House".. And the house uses a stacked deck, within the confines of the law. And the dealer has 4 Aces, with a fifth one up his sleeve.. I don't think your hand of a duce,3,4,5,7 is going to help much.. But go ahead.. See if you can bluff him! "SEE HIS BET AND RAISE"
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