Everyone knows Knights is in trouble. Posting circa $3m loss is...

Everyone knows Knights is in trouble. Posting circa $3m loss is the first half of 2005 (which basically wipes out all their profits for the last year(s)?).

Something to consider.... they are an insolvency practitioner. Yes, that means they should, theoretically, be able to manage their solvency crisis.

Only problem is that it may not have enough time to restructure, that is, does it have enough cash to tough it out? They have confirmed (on 6/5/05) that they are solvent - but how long will this last? 1 month, 2 months 6 months? They are seeking to raise equity.

If they can see through this tough time, stock may bounce back. Long on option for leverage? Have till 2007 which is 1.75 years away.