Penny stock with the 600K MD, page-15

Thanks for the calculations guys.

I think many forget the company was recently able to sell off 7400 undeveloped acres for $1500/acre or $11M, which was hardly a fire sale price despite the fact the company is in a distressed situation vis a vis its loan covenants.

I think many are also assuming that the "asset sale" means management are attempting to sell off the whole box and dice so to speak. Given the price that was achieved for those undeveloped acres, and given they still (a) have more undeveloped acres that could presumably fetch a similar price, and (b) have plenty of developed acres that would fetch a higher price, I dont believe there is a strong driver to sell off the whole company from under shareholders nose (at least not on management's part - that would be selling off the goose that lays the golden salaries, afterall). As for Guggenheim they have already provided some breathing space on the covenants which they so easily could have chosen not to. Presumably they are dictating to some degree management's current asset monetisation strategy, but I dont see how forcing the sale of the whole company versus selling only enough thats required to cover the loans is in their interest.

At the current prices though, a predatory takeover does continue to concern me.

Cheers, Sharks.