Quote:
Originally Posted by Biggy2
The stock might die, but the health of the company is still fairly strong. They still have 900k + subscribers, if they want to turn massive amounts of profit, they could simply cut a lot of expenses.
They are a very big beast and I am sure they are doing just fine. The stock price is headed downward because there is little shareholder value. Anyone who is taking those shares is an idiot, but hey, there are still ppl taking shares (Jigo City).
Can't hate on AFF really. They tried. And they did get some $. They'll just continue to run the company as is, service the debt, the insiders will continue to take awesome salaries and eventually try to dump their shares for more cash.
Basically, even if the stock price drops or they de-list, AFF isn't going anywhere. It just means their paper shares aren't valuable. If you could go out and convince a bunch of people to give you $50m for no real rights to the company except paper shares, and then those paper shares are only worth $10m, but you're company gets to keep the $50m, whose the winner in that deal and who is the loser?
|
"the stock might die but the health of the company is strong"
The stock is a good indication of the health of the company. A financially strong company's stock price goes up not drops like a rock and will eventually get delisted.
Also you keep making the same mistake that several other people here do, that don't know what they are talking about. It's not "AFF" it's Friend Finder Network. While AFF has been profitable in the past, it's the penthouse crew that is running the show and it's penthouse's failing mag biz + stupid attornies and countless lawsuits, terrible management etc etc etc that is ruining the company. The same penthouse crew that bought ibill and ran it into the fucking ground. Not to mention there is the 500M of debt that "FFN" created getting AFF and the fact that they are losing money each quarter (that's right sales - expenses = negative income).
Penthouse and Marc Bell can only con people so many times. They already tapped all the banks and investors they could get their hands on and they are still 500M in the hole. Tapping everyday stock buyers via the nasdaq was their last avenue to turn to. They running out of people to borrow from and their big fat high interest loans are coming due soon. At best the company will go bankrupt and be piece mealed out to try to re cope some money for investors, but just like ibill went down, those of you who are really owed the money at the end will get screwed again.