Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (76026)	4/16/2007 1:38:43 PM
From: ChanceIs	Respond to of 306849

>>>All it means is that they might not go bankrupt right away. It sounds like they are selling the vast majority of the company, at a loss.<<< That is my general belief. Such is always the case with a major market downturn. Do you want to hang onto your assets and risk the whole company on a quick recovery, or do you want to take your losses now and hope that you have enough left in the tank to recover. I would say that the BK risk went down a notch or two with this move - equivalent to postponing BK. The stock price pop would be shorts taking profits. With the sale of the assets, one has to figure that the potential for revenue growth is severely atrophied. Why invest in a company which can't grow profits? I would figure that its stock would resume a decline after a consolidation period at this level. At best it will flop around sideways for a year or so. The rest of the home builders and subprimes are rallying. I would have to figure that the Fremont news is the catalyst. False hopes I figure. The deal isn't done, and we have yet to find out if it was one or both first born sons Fremont had to surrender.