You dont know what you are talking about
You sound like you shorted this stock just b/c the 10K was released
and you heard that the company might go bankrupt. Im sure you did no
research on your own. Every point you made in your thread is exactly
what every other donkey in the heard would say. I was short this
stock for a while too, but once I got the chance to read through the
deal docs., I quickly covered and went long.
"Lone Star failed to get the approval needed 2xs" WRONG
They only had 33% of the shares needed. Im sure you dont know the
reason either...do you?
1. Your first point is wrong. LEND actually has them by the gills. Im
sure you wouldnt agree.
2.Your second point is wrong. If LEND decided not to do the deal,
then they would have to pay the 12 mil break up fee. Desperate or
really smart?
3.It is not an option. You would know this if you read through the
deal. So far from the truth and it shows that you have no clue what
you are talking about. And, once again, why you are wrong.
4. Wrong.
5. Wrong
There is no option to exercise or not exercise the deal. Lone Star is
on the hook . The company is not worthless and they have the cash on
hand from when they sold the 2bil in mortgages.
Short the stock Monday when it opens up. Or, short it anytime next
week. Im sure you are on the right side of this trade. You sound
like you are really on to something.
.
giorgi
...@aol.com wrote:
> stockhust
...@gmail.com wrote:
> "Lone Star has to do the deal. Its the wording in the documents.
> Lone Star f'd up and now THEY are on the hook".
> - Ok now, let's get down to fact's and stop emotional squeaking. Where
> have you seen the wording of the offer documents? The 10K revealed
> that the offer is subject to the state approvals. Lone Star has failed
> to obtain the needed approvals for 2 times already. During each of
> these failures Lone Star could have scrapped the deal. The extension
> allowed by law is 10 days so Loan Star extended the offer for another
> 10 days. This is what we know so far. In addition you don't sign 400
> mill contract on the deal in this market without including an
> additional escape clause. Why does Loan Star do it? you don't have to
> be a rocket scientist to understand:
> 1) They are holding LEND by the gills. As the price of LEND
> deteriorates they have more negotiating power and can renegotiate the
> offer price.
> 2) If the offer is scrapped LEND is obligated to pay Lone Star 12
> mill. Yes LEND will pay Lone Star. That again tells you how desperate
> LEND was when it signed the agreement.
> 3) The agreement is nothing more then an OPTION to buy LEND. and while
> regular options have an expiry time in case of LEND Lone Star can
> extend an expiration date by 10 days and LEND will agree to this
> because without Loan Star, LEND is out of business.
> 4) In case LEND goes bankrupt before the deal closes. Lone Star can
> use the agreement to lay claim to some or all of the LEND assets.
> 5) Agreement gave Lone Star access to LEND's books, insider
> information.
> Not a bad agreement on Lone Stars part. My guess is that Lone Star
> would not exercise LEND option because the option is out of the money.
> The company at this point is worthless.
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