Trader's Blog
February 14th 2009 19:26
Where was I before I became overwhelmed?
Trader's Blog has some very interesting videos and I would be remiss if I didn't bring them to your attention:
On Friday they posted 5 Stocks That Are Bucking The Trend. They have a video that shows what a buy signal looks like and, by implication, how you can search for the right time to purchase companies that you follow.
Today, Trader's Blog has a video titled The 10 Golden Trading Rules. Adam Hewison at Trader's Blog does everything he can to educate and mentor traders to be successful.
Finally, Gold and Silver have been very strong. Gold closed 2008 with its 8th yearly close and |Silver has rallied from a low of $8.79 in late October to $13.625 on Friday. What's in store for the future? Mover Mike has posted about Gold today here and Trader's Blog had a video on February 4th titled The #1 Predictor of Inflation or Deflation.
It's good to be back!
Trader's Blog has some very interesting videos and I would be remiss if I didn't bring them to your attention:
On Friday they posted 5 Stocks That Are Bucking The Trend. They have a video that shows what a buy signal looks like and, by implication, how you can search for the right time to purchase companies that you follow.
Today, Trader's Blog has a video titled The 10 Golden Trading Rules. Adam Hewison at Trader's Blog does everything he can to educate and mentor traders to be successful.
Finally, Gold and Silver have been very strong. Gold closed 2008 with its 8th yearly close and |Silver has rallied from a low of $8.79 in late October to $13.625 on Friday. What's in store for the future? Mover Mike has posted about Gold today here and Trader's Blog had a video on February 4th titled The #1 Predictor of Inflation or Deflation.
It's good to be back!
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Comment by Anonymous
I was reading your blog after I subscribed to it. It has alot of good information.
I need to know how to contact you. I guess I have got myself into a bit of a pickle. Maybe?
I have had some rough times of late and invested into a company some friends created and it went bust. (long story)
Then the real estate market went south and the 600k worth of lines I took out on my investment real estate (for the above bad investment) is killing me. In fact I may loose all 13 houses.
I then did a potentially harmful thing hoping it would save the ship. I took the last 25k I had liquid and invested it on a company I thought I investigated pretty well. The balance sheet looked a little thin on liquidity but the assets were there:
Assets: 483M
Cuyrrent Assets: 274M
Current Liabilties: 76M
Total Liabilities: 261M
Income: -2.4M per quarter
Well I bet the farm thinking this company is worth 6.17/share in shareholder equity and 3.39/share in Net tangible assets (36M shares total and 26M shares in the float.
Anyway, as you know Hartmarx (htmxq) filed for Chapter 11 on January 23, 2009. I guess what happened is the bank Wachovia was having it's own problems and got scared and called the line which i guess they have a right to do. They stated it was because of their vision of the future prospects of the company.
Well this plummeted my shares to .025, well I could think of nothing else to do but average down since the balance sheet still had all tese assets on it. This was supposed to be a save the ship investment and my feet are getting wet right about now. I am averaged in at .058.
I have heard some horrible rumors that the board and any buyers can simply ignore the shareholders equity and just wipeout the shares when the company comes out of Bankruptcy. Now this is a great take over targt and there is at least 3 potential buyers looking at the company as we speak but can they jus say to the shareholders eventhough you looked at my balance sheet and this is why you invested your money into this company we are going to use a tactic and cramdown or steal by dilution the eauity you have in the company and take the assets and the new investors or buyer and go start anew?
If this is true this seems very unethical and illegal. I need to know what are all the sneaky stuff they can do to us shareholders. Does Chapter 11 give them the right to enrich themselves on our equity. I should say there are no Preffered Shares out in the company that the statements show. I would make it out of this pretty well if they only stold half the equity or even half the net tangible assets after they used the rest to pay off the existing debt but if they take much more I have a real problem.
I am familure with the absolute priority laws and seem to indicate that we recieve what is left over but I am scared that they will structure the deal so there is nothing left over even when tere clearly would be if it is done fairly. The current assets are higher than the total debt so this leaves the 121M of net tangible assets plus about 104m worth of intangible assets plus the Real Estate is very old and has been booked for many years and is probably very valuable as well but it does not show on te balance sheet that way due to accounting rules.
I am looking for a very detailed and clear answer since this all the money I have to my name. I need to know the reasoning behind your answer as well if you do not mind.
All the institutional investors have left so it is just a group of indivdual investors to fighht this figt if need be. If the institutions were still involved I would feel alot better knowing they might have the know how and resourses to fight for th common shareholder.
Please, any detailed information would sure be a God send. The biggest problem is I need this to work out because the 25k will not help me save the ship. My current value on my shares right now is $10,797 but if I am going to loose even that I might as well remove it.
You see I have myself in a pickle and if they can take us out I am really hurting.
Need your help,
God Bless,
Tracy
Hartmarx (htmxq)