Why is stock price still 50 cents if Q2 earnings are going t..o be good and refinancing of debt....

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anonymous

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I have watch stocks like OPTT and TOPS sky rocket prior to good earnings being released. (which typical happens for stocks about to report good earnings).

Yet Pernix is still under $1 (actually at 50 cents).

Plus all the talk. About debt restructuring being good.

So someone please tell me if good earnings is about to happen next week, plus refinancing of debt taking place also, why is this stock so low.

What is it going to take to move over $1?
 






anonymous said:
I have watch stocks like OPTT and TOPS sky rocket prior to good earnings being released. (which typical happens for stocks about to report good earnings).

Yet Pernix is still under $1 (actually at 50 cents).

Plus all the talk. About debt restructuring being good.

So someone please tell me if good earnings is about to happen next week, plus refinancing of debt taking place also, why is this stock so low.

What is it going to take to move over $1?
Click to expand...

About 100 more sales reps.
 












No you are missing the point companies that do indeed have good earnings see their stock price rise a week or so BEFORE the earnings conference call. Reason is the financials are already completed internally and gets leaked out to Wall Street. Thus the price rises.

This is not happening at all with Pernix. Nor is the price rising on a positive debt restructure (versus toxic deb restructuring).

These two facts makes this stock very scary. Trust me, the folks on StockTwits do not know more then the professional investors on Wall Street. If earnings are expected to be solid and debt restructure positive and not toxic financing - then the stock price would be going through the roof.

So again, why is this stock price so low at .50 cents ?
 






Are you seriously asking this question. Company is in financial distress. 30M in cash on hand and over. 300 million plus in debt. Sales last quarter was beyond dismissal and guidance never reinstated for Q2 (which means sales for Q2 will not be good. Again). Plus CEO fired and 25 percent of company fired.

No bank is. Going to simply. Lower interest rate and push out the terms. Unless they get something in return. Simply too risky as company can run out of cash by year end if sales/profits do not improve.

Drugs are highly priced and not being sold/recommended by the doctors.

And you wonder why this company stock is so low. Come on StockTwits guys/gals. What do you know that Wall Street doesn't.
 






anonymous said:
Are you seriously asking this question. Company is in financial distress. 30M in cash on hand and over. 300 million plus in debt. Sales last quarter was beyond dismissal and guidance never reinstated for Q2 (which means sales for Q2 will not be good. Again). Plus CEO fired and 25 percent of company fired.

No bank is. Going to simply. Lower interest rate and push out the terms. Unless they get something in return. Simply too risky as company can run out of cash by year end if sales/profits do not improve.

Drugs are highly priced and not being sold/recommended by the doctors.

And you wonder why this company stock is so low. Come on StockTwits guys/gals. What do you know that Wall Street doesn't.
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Amateurs that think that wallstreet always know better are clueless. If you think like that you will never make money. There is a thousand exemples of stocks that popped on surprised results, earnings, etc. Anyway whatever you are saying is wrong, a stock that news have leaked will generally only move a few days before ER. Well documented phenomenon. Will never be too early to not attract to much attention and movements. Once ER date is set check a few days before what happens. If it really doesn't move than I will agree that the risk is higher. BTW that's what MM's do, they make sure someone can accumulate without being noticed. The same stock did trade weirdly a few weeks ago. Very high volume but wasn't moving a penny.
 






anonymous said:
Are you seriously asking this question. Company is in financial distress. 30M in cash on hand and over. 300 million plus in debt. Sales last quarter was beyond dismissal and guidance never reinstated for Q2 (which means sales for Q2 will not be good. Again). Plus CEO fired and 25 percent of company fired.

No bank is. Going to simply. Lower interest rate and push out the terms. Unless they get something in return. Simply too risky as company can run out of cash by year end if sales/profits do not improve.

Drugs are highly priced and not being sold/recommended by the doctors.

And you wonder why this company stock is so low. Come on StockTwits guys/gals. What do you know that Wall Street doesn't.
Click to expand...

Check Relypsa. Morgan stanley (I don't know if you heard about them, small bank on wallstreet) was telling their customers to short it and they had a heavy short position with a PT of 9$. Saying that nobody would ever buy them, small revenues, high risk of debts with eventual BK. What happened? Buyout at 32$. That's only a small story amongs others.
 


















anonymous said:
Are you seriously asking this question. Company is in financial distress. 30M in cash on hand and over. 300 million plus in debt. Sales last quarter was beyond dismissal and guidance never reinstated for Q2 (which means sales for Q2 will not be good. Again). Plus CEO fired and 25 percent of company fired.

No bank is. Going to simply. Lower interest rate and push out the terms. Unless they get something in return. Simply too risky as company can run out of cash by year end if sales/profits do not improve.

Drugs are highly priced and not being sold/recommended by the doctors.

And you wonder why this company stock is so low. Come on StockTwits guys/gals. What do you know that Wall Street doesn't.
Click to expand...
Agree, the end is near
 






No bank has to agree to anything, lol. I doubt they even deal with a bank, prob institutional investment firms instead. They dont get loans at the bank like normal folk. They have the right to refund the 12% notes anytime the company feels like it, they can then reissue new bonds at whatever rate the company decides, question is if investors will buy up the new notes or not. (they wouldnt even try w/out buyer lined up) They could significantly lower interest rates and still have an attractable bond to sell. They save around 6 million by waiting until after Aug 1st as the premium to pay principal decreases from 106% to 103%
 






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