To: Jon Scott who wrote (400 ) 2/19/1999 11:44:00 PM From: Sethpop Read Replies (1) | Respond to
Diller doesn't matter to common stockholders.... It is important to understand that with their credit selling at 40-45% on the dollar...even if Disney, Amazon, Diller, AT&T and Exxon want this company...nobody will buy it (or selected assets from it) without a pre-packaged bankruptcy to cleanse it of its past "sins" (spell that debt, obligations, contracts, leases etc.) and at the same time basically wipe out the common stockholders like was done with Caldors, Bradlees, Ames, Marvel, Mercury Finance, Zenith, Discovery Zone and many other companies. The common shareholders come below all of the other claimants and thus will get at best what the attorney for the company indicated...a virtually worthless "out of the money" warrant for a small fraction of a share for each current share...If lucky it might be measured by one or two whole cents and not mils!! Don't get suckered into saying "Gee...if someone is buying they must know something.." They DON'T....They are JERKS!! The brokers and the public do not understand re-structurings. If you don't believe this..go to the Bradlees message board or the Caldor message board or the Discovery Zone board or the Edison Brothers board or the Marvel board and read how everyone thought that there was hope because the stock would move up...Same thing for Boston Chicken..That one will also wind up with ZIPPO...just a bunch of hypesters and ignorant investors winding it up so others can make money off of the weak and uninformed. It may take 2 months or 6 months or 12 months and the stock may bob up and down (see the chart on Bradlees or the others)...but when the judge bangs his gavel on the reorganization plan..this stock will be worth either ZERO or at most a few pennies in translation to an out of the money warrant which gives the shareholder the right to buy a fraction of a share in the "new" stock..so that you can pay MORE money to help pay off the old creditors and invest in the new company!! Just because you see your neighbor jumping off his roof does not necessarily mean he has discovered the secret to flying!!
