Quote:
Originally Posted by will76
"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. |
Stock price moves up and down by the 'perceived' value of the company, not the real or actual value. Sometimes it does move with actual value, when markets act rationally. Many times markets act irrationally. It moves up when more people buy the shares then sell, and vice versa. If you deny this, then you really don't understand the market.
Last I checked they were paying the debt down, and yes, they could go bankrupt, but once again, what does that truly mean for the operations of the company. It's all financial games, but if your an insider, typically you come out ahead, no matter what the situation. That's the problem with the stock market, it's a game for insiders.