The debt restructuring is good as expected

[StreetCommonSense]

New CEO is doing the right things to turn around the company. He works hard to cleaning up the mess left by the former CEO. John Sedor has an excellent record in managing and turning around in-trouble companies.

For Pernix, employees layoff/reorganizing is a must to reduce the company's expenses. Short-term may get hurt (sorry to the effected employees), but the company will be much more healthy in a longer term. Debt restructuring for a lower rate with longer payment time is a good way to go. Excellent news for stockholders. Next quarter, company's balance sheet will look much better.

In my view, if without a buyout, we will see $2 per share in next year. If the company targets to a buyout/merger, its share price will be at least $3.

--- by a SCS's analyst

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This is an opinion of the Street Common Sense Group.
We don't advise to buy or sell the stock mentioned above.

 

[anonymous]

LOL the blind Stock Twits folks that know nothing about the company. Example, the debt restructuring being discussed is indeed VERY GOOD for the employees as it is debt for equity. If approved, company will give creditors shares of stock in exchange for lowering interest rates.

Unfortunately if approved, this is VERY BAD news for investors as the additional shares will dilute the common shares and drastically reduce the stock share price in the process. Long term in 2017 it can end up good if/when a buyout occurs. But short term, not so good.

Now if creditors do not approve , mgmt. still has option of DIP financing to save the company.

As for Sedor, he made a lot of promises to the sales reps. Many who feel he has lied. There is no motivation now from many sales reps to go the extra mile for the company. Most are looking for new jobs with a more stable pharma company.

Simply put, this is a bad investment at this time. Yes it has good potential if the company can get turned around. But shareholders will not see a return on investment until 2017 (if company does survive)

There is a reason why the stock price has crashed to under 50 cents. Wall Street understands all of the risks. Hoping is not an investment strategy other than the people on StockTwits.

 

[anonymous]

LOL the blind Stock Twits folks that know nothing about the company. Example, the debt restructuring being discussed is indeed VERY GOOD for the employees as it is debt for equity. If approved, company will give creditors shares of stock in exchange for lowering interest rates.

Unfortunately if approved, this is VERY BAD news for investors as the additional shares will dilute the common shares and drastically reduce the stock share price in the process. Long term in 2017 it can end up good if/when a buyout occurs. But short term, not so good.

Now if creditors do not approve , mgmt. still has option of DIP financing to save the company.

As for Sedor, he made a lot of promises to the sales reps. Many who feel he has lied. There is no motivation now from many sales reps to go the extra mile for the company. Most are looking for new jobs with a more stable pharma company.

Simply put, this is a bad investment at this time. Yes it has good potential if the company can get turned around. But shareholders will not see a return on investment until 2017 (if company does survive)

There is a reason why the stock price has crashed to under 50 cents. Wall Street understands all of the risks. Hoping is not an investment strategy other than the people on StockTwits.

90% of what you just said don't even make sense. If you don't know how financing works just shut the fuck up.

 

[anonymous]

Heard the same thing from my RM. Debt for Equity financing is being offered to creditors.

 

[anonymous]

Also heard from RM that reverse stock split after earnings is released in two weeks.

Don't shoot messenger here. Just passing along info.

 

[anonymous]

Lol at idiot stocktwit morons. Either the company will file bankruptcy or the equity will get massively diluted (and either way, the company will continue to decline as the product portfolio is complete garbage and the sales reps are incompetent clowns).

This pile of shit company is not getting bought out. I will gladly sell any of you idiots $1.00 call options expiring in 2018 for let's say...$0.10. This should be a bargain for you...so contact me if interested. I would personally love to essentially steal money from retarded morons who seem to think the stock market is a casino.

 

[anonymous]

Lol at idiot stocktwit morons. Either the company will file bankruptcy or the equity will get massively diluted (and either way, the company will continue to decline as the product portfolio is complete garbage and the sales reps are incompetent clowns).

This pile of shit company is not getting bought out. I will gladly sell any of you idiots $1.00 call options expiring in 2018 for let's say...$0.10. This should be a bargain for you...so contact me if interested. I would personally love to essentially steal money from retarded morons who seem to think the stock market is a casino.

Says the stocktwit loser posting on cafepharma. Go back to stockitwit you r*****, this is for rep not for monkeys.