There is very little volume being generated for such a selling frenzy. Maybe some traders and buyers are ignoring FKPDA due to the five letter code. It makes no sense to sell if the buyers are not there. Volume is significantly lower than when FKPDA was FKP even allowing for 7X. Average daily has been about 400k per day, when pre DA it was easily twice as much adjusted.
So these sellers seem idiotic to me pushing so hard. So maybe there are some games afoot. The only reason I can think of is to reduce expectations in the event of a takeover. Too dangerous to short now IMO. Might not be so easy to push like this when the code reverts back to FKP??? I'm about to take some big profits on something and hope the SP stays down so that I can buy more, and line up my next big profits. I'm honestly not fussed about the SP, but would hate to see anybody panic selling if there are games afoot.
The covenants have nothing to do with the SP. It is just pressure if FKP wanted to do a cap raise.
Retirement is about 2.5b out of 3.7b total assets. Retirement borrowings are about 1.9b out of 2.2b. (importantly about $1.3b is interest free "loans" from residents). (This is before the $200m cap raise)
Current loans (ex resident loans) are $291m, but Aerial is about $80m of this, and is complete, Port Bouvard is non recourse at $44m. There is the Wilbow $123m facility to be repaid or refinanced at June 30th 2013. FKP just raised over $200m cash from the cap raise. ;-)
FKP Price at posting:
$1.02 Sentiment: ST Buy Disclosure: Held
