Quote:
Originally Posted by Biggy2
The stock might die, but the health of the company is still fairly strong.
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?
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If only stocks worked that way; when you issue a stock and make statements about its value, you make yourself vulnerable to CA lawsuits if it drops in this fashion. "taking 50m from a bunch of rubes" has consequences, and many of those rubes have lawyers. To properly defend yourself, you'll spend millions. They don't have millions. The real issue is the debt and their S&G. Reduce those and the stock will head up and diminish exposure to this kind of potential liability.