Quote:
Originally Posted by Biggy2
I think FFN is doing a good/decent job. The loss statements are a bit overstated. There looks to be a healthy nucleus, they are taking the profits and re-paying back the debt over time. It looks like they continue to cut the fat, and got hit with some unfortunate 1 time fees like the $15m settlement broken in to 3 - 5m parts.
I think if there's any real problem, it has to do with little public support for the stock (Harry, Jane, and Main Street or institutional investors buying into the stock). I think the only real losers might be the public shareholders who bought into the IPO or are long. I'd bet the debt holders get paid. I'd bet the insiders are collecting their salaries. I just don't think there's a lot of demand for the shares and I'm not quite sure if demand for their shares will really influence their operations.
If the stock trades at $1 or $3, or $7 what does it change? All it really means is their ability to raise money with future issuing, or then insiders being able to exit to the public market is reduced. They can still just operate the thing, collect salaries, pay off debt in time, etc.
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1. Obviously millions of investors don't think they are doing a great job or their stock wouldn't have dropped over 70% and be valued under $3 a share. Yeah, blame their stock price on "Main Street" investors don't like them
The losers are ANYONE who has purchased their stock, not just at the IPO. Obviously the IPO purchases lost the most, but since the stock has steadily gone down it is very likely that almost everyone who has purchased stock, and still holding it, will lose.
2. They have a healthy nucleus? LOL on the contrary its riddled with cancer. The people in charge are the same ones who have been losing tons of money with Penthouse over the last several years and also who purchased ibill and ran that into the ground. Great track record for them. Also, AFF's sales have gone down.
3. Unfortunate, one time fees of 15M ? LOL yeah ok, that was just the settlement from one lawsuit. They have several others in the process, all as the defendant, including a huge one that has Facebook suing them. I wouldn't say that there lawsuit payouts are "one time fees", should be more of a line item, monthly expenses lol.
4. Paying back Debt? They have over 400M in debt. Last Quarter, they didn't make enough money in sales to cover their operating cost much less to pay back debt and all the legal fees/suits (hence why they had about 13M in loses). The 400M in the owe in debt is going to be called due in 2 years, no way in hell they can pay that off, and i doubt they will even be in business by then anyway.
5. " If the stock trades at $1 or $3, or $7 what does it change? All it really means is their ability to raise money with future issuing..."
It changes a LOT. Considering they are going negative, have 100's of million in debt and a huge legal suit hanging over their heads I would say the ability to raise money would be critical to them trying to stay a float.
Quote:
Originally Posted by fuzebox
Biggy we have no need for logic in an AFF hate thread!
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Logic is welcome, but his post was fantasy land. Just because people "hate" doesn't mean they aren't correct in what they are saying. You people who love AFF can keep your heads up your ass and just keep hoping they going to stay in business and sending you checks each week. Most of you can't even understand that it's no just AFF any more. It's FFN which is really the penthouse crew. How well has penthouse been doing under these guys? How well did the same crew do with ibill?