Disclosure: I am short BBRY. I am short through put options (More…)
My article yesterday about BlackBerry (BBRY) titled “Fairfax Financial’s Debt Investment In BlackBerry Could Wipe Out Shareholders” sparked a lot of debate with questions and issues raised in the comments section. I decided to write a follow up article to answer some of these questions.
Issue #1 and #2: There are many interested bidders for BlackBerry, including Cerberus Capital, and to compare BlackBerry to the Yellow Pages business is ludicrous.
My interest was piqued as soon as I heard that BlackBerry founders were talking to Cerberus about a bid for the company. It was a trip down memory lane for me and somewhat ironic given that some BlackBerry longs found my comparison to the Yellow Pages business to be unreasonable. My article titled “AT&T Dumps Yellow Pages Business: What This Means For Yellow Pages In Canada” talks about Cerberus Capital Management buying AT&T’s (T) Yellow Pages business last year.
Cerberus has a focus of investing in distressed assets, and I wouldn’t think a bid from a vulture investment firm would exactly spark investor excitement. Referring to my article you can see that Cerberus paid a 1.74 EBITDA multiple for the Yellow Pages business and many people felt that they overpaid.
No matter how much BBRY supporters believe that the stock is undervalued, the facts will tell you otherwise. Despite the fact that BBRY’s stock price has tanked over the last several years the company is still not trading at a level which could be referred to as distressed or at a bargain. According to Yahoo Finance, BBRY has an Enterprise Value to EBITDA (EV/EBITDA) metric of 6.5 at a stock price of $6.51 as its $1.01B enterprise value is met with $156M of EBITDA, which most people will agree is headed south at least in the short term.
When we talk about Cerberus buying out BBRY and we refer to the price they paid for AT&T’s Yellow Pages business, it does not leave a lot of hope for the bullish side. A 1.74 EBITDA multiple is a far cry from the 6.5 multiple someone would have to pay to buy out BBRY at Thursday’s closing price. For Cerberus to be a serious bidder for BBRY, the stock price has to drop A LOT further from $6.50.
As far as the Yellow Pages comparison being ludicrous, in some ways I agree because the BlackBerry business is actually worse in its current state. I think most objective people will agree that from a brand perspective and consumer perception, BlackBerry smartphones and the Yellow Pages advertising print book are seen as relics of the past and are “uncool” or “inferior” today, with the difference being that the Yellow Pages business had a few decades longer of a successful run. In that sense they are equivalent.
But referring again to my Yellow Pages article, at the time of the purchase AT&T’s Yellow Pages business had a year-over-year decline in revenue of 16% with a 31% EBITDA margin. Canada’s Yellow Pages, now referred to as Yellow Media (OTC:YLWDF), at the time had a 51% EBITDA margin on a year-over-year decline in revenue of 5% (since then the revenue decline has increased before becoming stable). Referring toBBRY’s disastrous financials from August, we see that revenue declined from $2,861M in the same period in 2012 to $1,573M in 2013 for a 45% decline. EBITDA margin is greatly skewed to the negative thanks to the large write-off they took during the quarter, but the adjusted loss from continuing operations was $248M and it excludes the $1B charge. Adding back depreciation of $171M to this amount leads to an EBITDA of -$77M or -5%. Although the comparison is for just one quarter, most people agree that in the foreseeable future BBRY will achieve similar poor operating results in its business. When we compare everything objectively by the numbers, the Yellow Pages business are vastly superior to BlackBerry in terms of EBITDA margin and slower revenue decline. So if comparing the businesses are ludicrous, I would suggest the ludicrous aspect of it sides with BlackBerry.
Even if you don’t like the Yellow Pages comparison, there are a bunch tech firms out there which have been much more successful as of late than BBRY which trade at a EV/EBITDA multiple equivalent or lower than BBRY. Symantec Corporation (SYMC) trades at an EV/EBITDA multiple of 7.4 at a stock price of $22.83. Cisco Systems (CSCO) trades at anEV/EBITDA multiple of 6.5 at a stock price of $23.11. Hewlett-Packard Company (HPQ) trades at an EV/EBITDA multiple of 4.5 at a stock price of $25.69. Microsoft Corporation (MSFT) trades at an EV/EBITDA multipleof 7.4 at a stock price of $37.50.
BlackBerry supporters often talk about the value in the company’s patents. Well, Wi-Lan Inc. (WILN), a company known for its hoarding of patents, trades at an EV/EBITDA multiple of 4.6 at a stock price of $3.18. Finally, BBRY’s former arch-rival Apple (AAPL) trades at anEV/EBITDA multiple of 8 at a stock price of $512.49. It is scary to see how expensive BBRY is compared to its peers given that they are all in a revenue growth or stabilization stage and BBRY is in steep decline.
Investors bullish on BlackBerry would have very little evidence supported by facts and numbers that would support their case that the stock is cheap. What they often go on is the fact that the stock price has tanked a lot, Prem Watsa appears to love the business (just like he loved the newspaper businesses) and there is some vague value attached to BBRY’s patents that implies the possibility of a buyout at an ever lower price as time goes on.
Issue #3: I, or other bears claim that the business is worthless.
I never said that the business is worthless. I said that the stock has a good chance of becoming worthless as there is now debt on the books which outrank the shareholders. There is a big difference. Let’s take the Cerberus Yellow Pages example. If BBRY were to be valued at an EV/EBITDA multiple of 1.75 just like Yellow Pages in a liquidation scenario in three years and all cash was exhausted, assuming that EBITDA remains at around $150M, BBRY’s enterprise value would be around $270M. Shareholders would be wiped out and even the debtholders only get 27 cents on the dollar. But the business would not be worthless. Just the shares.
Let’s use a much kinder example. Assuming in three years BBRY has $1B left in cash, an EBITDA of $200M and is valued with an EBITDA multiple of 5. The total purchase value would be $2 billion – one each for the cash and the business. The debtholders would be paid first which would leave $1B for the 514M shares outstanding, or less than $2 per share and that doesn’t factor in the share dilution that will take place for bringing in John Chen or the $250M break fee (more on those pieces next).
Issue #4: John Chen will be the savior of Blackberry
From what I have read, John Chen appears to be a perfectly capable leader. He may be able turn the business around. But I have several issues with his hiring. First off, his compensation package is ridiculously high, especially considering he has the word interim attached to his position. The good news for BBRY shareholders is that his annual salary is a reasonable $1M a year. But with bonuses and stock incentives his total compensation could exceed $85M. Put it in this perspective – one of Muddy Waters claims against NQ mobile (NQ) was that Omar Khan was fronting for the company and was overpaid to do so with nearly $100M in stock incentives. John Chen will be compensated nearly as much.
In my blog I called out Farifax’s bid on BBRY as a ploy to exit its position or slow the bleed on BBRY’s stock price. We know the company has a history of making headlines just to get the attention off of BBRY’s horrible financial performance. I believe the hiring of John Chen is just another ploy to slow the eventual tank of the stock price as it gives some investors hope of a turnaround. The overpayment in terms of stock incentives and the interim moniker attached to him as BlackBerry’s new chief suggests that it took a lot of arm twisting for him to be convinced to take the position and that he is very cautious and non-committal about it.
Who would offer someone a job that pays out $85M in total compensation and structure that compensation to ensure they stay at least 5 years yet demand that they be termed the “interim CEO”? That makes no sense. The demand to be referred to as an interim leader very likely came from John Chen himself and that is to provide himself with an easy escape to keep his reputation intact in case he thinks that BBRY is in too deep of a mess to be saved.
Issue #5: BBRY has $4B, $5B or whatever much higher amount of cash than my claim and I am being far too pessimistic about BBRY’s cash position.
No, they don’t. If an investor is to talk about BBRY’s cash, they MUST talk about net cash. There are $3B of liabilities that must be settled in cash in the near future. The $1B cash influx from the debenture has an offsetting liability associated with it, and has a coupon payment of $60M a year in addition to the operating losses that the company will experience in the coming quarters. It is NOT a gain in net cash, really it’s more of a tool for Fairfax and associates to extract whatever value that they can from the company. As far as the $1B in tax refunds – until that is on a balance sheet as a reasonably collectible asset, that asset is speculative.
Issue #6: Fairfax is not investing in 100% of the debenture, and my conspiracy theory that they are going to take under company makes no financial sense to them.
I always referred to the deal as Fairfax and associates. I was well aware that Fairfax alone wasn’t the only investor. As far as the math and logic behind it – anyone who follows mining companies on the TSX knows a lot of large investors have lost a lot on paper in their equity stake. Many of them will know that a popular way to recoup those losses is to let the company go under, then purchase its assets in a CCAA proceeding. Retail investors don’t think the same way as large investors. Retail investors buy shares in a stock. Large investors buy businesses and/or assets. They are relatively indifferent whether that is through a buyout or minority purchase on the equity market or through a bankruptcy sale. My article from yesterday shows that Fairfax has a propensity to buy up distressed debt in order to gain an equity stake in the restructured company. In a restructuring the assets are often unchanged – it’s only the corporate structure and financing that is different.
Regarding the math itself – Fairfax owns a 10% stake in BBRY. A situation in which shareholders are completely wiped out and debtholders get 100% of the equity in a newly restructured company, Fairfax would see their equity stake rise to 25% as that is the portion of the bonds they are invested in. They win. Retail investors mistakenly think because Fairfax will take a big loss on the shares that the company would never allow this scenario to happen. In reality, a wipeout of its BBRY equity stake and restructuring would provide Fairfax with some nice tax loss credits along with an increased stake in BBRY assets. Fairfax has as much incentive to see equity shareholders get wiped out as they do to see BBRY turn it around. This along with the $250M break fee was a brilliant set up by the company so that it makes money no matter what happens to BlackBerry, all on the backs of minority shareholders.
Issue #7: I am just a shorter and I want the company to fail/personal attacks on me.
I do not *want* BlackBerry to fail any more than any other company out there. BlackBerry IS failing and all I’m doing is calling it out on its failure. There are thousands of investing options for me to choose from and out of the few I decide to take, a BBRY short position through put options is one of them. I have shown in my last two articles that BBRY has a much worse cash position than what many people believe, its burn rate is high, when comparing to its tech peers it is not cheap, its business is on a similar path to Yellow Media which dropped in stock price from well over $5 to a few pennies in less than two years, its most vocal bullish significant shareholder has a history of investing in distressed assets in which the equity went to zero, and the company has extremely weak corporate governance where Fairfax has managed to set up a situation where it makes money whether or not the company survives under the BBRY symbol and where it has to pay an enormous compensation package to an interim CEO. What is there not to like about shorting this company?
John Templeton said buy at the point of maximum pessimism–
so don’t know about the bottom but we certainly have been close to operating tables and pessimism
http://1.usa.gov/HLhRGl
That can, and will, change.
It may take another year or two, but you can change the underlying assets that the company has. Now with an experienced executive in charge (both Watsa and Chen) and their connections, I expect that next year at this time $20/share won’t seem so outlandish….
I just hope you haven’t put all your eggs into this basket-case stock
As you know I am bearish but I think I may go long depending on the new direction, $1bn enterprise value seems super cheap considering the money they make on enterprise and software…
Great article once more
If you look at the new Twitter stock, it is interesting to note the amount of positive spin in the market for that stock offering when considering their current financial position. What company is in the better position right now BBRY or Twitter from a numbers standpoint? Which stock could gain income sooner? Which stock would be easier to direct at this point in time? The negative market spin on BBRY has never been at deserved levels, but I believe has had a devastating effect on BBRY never the less. A savy BBRY management would be able to address this ultra negative market perception as job one.
Note to readers: I have been wrong every step of the way in reading the BBRY stock to date and am thinking of adopting George Kastanza’s “opposite” decision making if nothing changes soon.
BlackBerry will be BlackBerry and it will not be sold!
It could be the case that someone else is lined up but can’t be announced yet due to their current position OR that they are giving Chen the power to recruit his own CEO. I suspect the later… it would be foolish for current management to handicap Chen when he is being brought in as the ‘turnaround guru’ by appointing a new CEO without his input since the two men are going to have to work closely together.
From organizational behavior it may also be that Chen plans to take on the role of ‘acting CEO’ and do the dirty work that hatchet man need to do to turn a company around, then once the dirty work is done take a back seat just providing general oversight as chairman bringing in someone else at that time for the CEO position.
It is rare that anyone manager is able to switch hats – hatchet man to rebuilder – due to the nature of the two roles and the enemies made when in the hatch role since to play the role well you need to take a heavy hand even with sacred cows within an organization.
Considering that Chen is not going to be the CEO, I am a little concerned with how rich a package he has received. The package works out to $20M per year if he stays the full 5 years (once stock options are worked in) which is high for just a chairman. Although it only places him in the middle of the pack of the top 100 highest paid executives (and about the same income as the CEO of General Electric) it will place him as the 4th highest paid Chairman in North America and sets the stage for BlackBerry to have to pay an even higher salary for a new CEO when they recruit one since it is rare that the CEO is paid less than the Chairman.
It begs the question how much more are they planning to pay the new CEO when announced?
All the analysis and information available doesn’t infringe on the great unknowns and unexpecteds. Else there’d be very little trading.
I find it interesting how active the BB articles here are compared to others. The opposite of love isn’t hate but indifference.
How about you give me all the reasons why Twitter is such a good investment?
TH had a vision and generated a turn around- i had a reason to be long
under his rule the stock almost tripled
his only mistake was being late and going too big with the z10- it’s not his fault there was no demand for the z10
but look at what you have now- PW and chen- prems only motivation is to make up for his losses
and chen is a good guy but latest rumor has it he wants to turn bb into a software vendor which will make BB worth even less and dissapoint alot of consumers and by less i mean 2/share
there are plenty of software vendors around
BB can continue to make profit on hardware but on lower volume-
either way management have themselves insured so they have no reason to do a good job
with all the debt question is whats is the true value here?
bbry still has 70mil users/patents/cash
i believe it can continue to survive but if poor decision are made
which may even happen with this type of management than the party is over
next earnings report is key
BlackBerry is what it is, independent of Twitter.Oh, I think I get it.
You think BlackBerry could/should have some crazy high valuation too especially when Blackberry has real value and Twitter doesn’t. This is it, isn’t it? lol
Let it go, that argument will only bring you grief.
Can I suggest to also consider only the new debt they are now assuming and do not consider the corresponding cash infusion?
So you can have your cake and eat it too!
I have friends who regularly tackle home improvement projects on their own. So when their driveway became a pond during every rainy part of the winter, they rented a backhoe, bought the specialized perforated pipe and screened gravel and installed their own curtain drain. I was impressed, of course.
But it was the telling that was always the best part as these stories always had complications and unexpected delays. Their rationale was always:
1. How much could it cost
2. How long would it take?
3. Really, how hard could it be?
They are almost never correct on any of the three. In this case there was rock a few inches down, the pipe not flexible enough and the backhoe had to be rented for 10 days instead of a three-day weekend. I think of them often when contemplating something beyond my skill level.
I fear the easy turnaround for BlackBerry has the same obstacles. Some want to flush out the old unpopular phones at breakeven on the retail market so users can enjoy the BBRY experience. I see a problem as the new models were rejected when priced at the higher end. Consumers in that segment looked and deliberately chose Apple or Samsung instead. Those unwilling to spend $500-700 would have chosen an LG or a more basic Android device.
If the phones were offered at a cut-rate price of $250 it would be a bargain in that price sector but users who went for it would never see a similarly featured BlackBerry in that price range again. More sophisticated users would suspect the motive was to dump the phones on the market before they became obsolete.
It has been 4 months since the BBRY story started its most recent melt. An IT professional would need to be a monk to have missed the saga and not have doubts about whether BBRY will continue to be a reliable provider of enterprise communications. They are for sale! No, a director is buying them out! Or Lenovo or IBM or Papa John’s… Or maybe we’ll figure this out on our own.
If you talk to an Apple user, they are almost always boastfully loyal about their products. Samsung, not so much, but sort of in line with the old duopoly between Ford and General Motors. If you own one you are likely to stick with it.
With this PR mess, it is hard to imagine how BlackBerry will present itself as a well-differentiated choice to the slice of the market willing to make a change. Some say security after the confirmations of government eavesdropping. I’ve seen that mentioned here a hundred times – in real life not at all. “Hon. Don’t forget Janie’s game at 4:00.” is not the stuff of spy legends.
It is easy to see this situation going either way. But like my friends, to get it right will cost more, take longer and be a LOT harder than everyone thinks.
No amount of cleaning up and streamlining will solve that.
And wouldn’t it also be fair to say that these enterprise evaluations will be influenced by the tsunami of bad news and difficult times surrounding BlackBerry?
I wouldn’t start counting chickens just yet.
Isn’t that really the story here? I am not counting chickens. The louder the negativity and stronger the calls for this company’s demise, the more convinced I am that they will survive and make a positive difference in the world of Mobile. Every Blackberry hater, shorter, ect. Is COUNTING on decision makers/consumers/IT guys to not choose Blackberry offerings. ” Don’t buy Blackberry ….they won’t be around soon…” Sound Familiar??
It does not seem to be well appreciated that a company making a long term and fundamental shift because of an evolving market has to do it in a managed fashion while servicing the existing customer base (which uses BES and BIS).
When the first really popular BB was launched a few years ago with an Intel chip, Intel really let them down on supplies and they were unable to meet the extraordinary demand.
‘Never again’ they swore. So the boys responsible over-reacted this time with securing supplies. So they are overstocked. Big deal. Hold a blow-out sale and book the loss.
There was a material loss involved both times. There was market share loss over what could have been. Next time hopefully they will get it Goldilocks-right, that time being the Z30 and its follow-ons. The form factor is perfect for Asia and it has the horsepower and battery to work for mobile computer solutions. BBM is a major part of that.
Chen needs to reign in some of the loose cannons that deviate from the core plan, a plan long in the execution, which is to create (recreate) the enterprise that is well grounded for the cloud-based future, while retaining the device management capability that is its core product. Hardware can be contracted from a dozen places. Core patents are not so easy to come by, as Google found out. BBRY is sitting on a stash of them.
There is a reality-check quote sometimes used in American politics – “A billion here and a billion there and pretty soon you are talking about real money.” You should not disregard BlackBerry’s weakening financial position so lightly. This continuing debacle in handsets has closed the major source of company revenue.
It makes one wonder if the next generation of phones will not be Samsung devices that boast of having “BlackBerry Inside” much the way PC’s used to indicate Intel.
If there is not some clarity – and soon – about what The Plan might be, it won’t matter who was hired first or last.
Without a substantial increase in revenue, the $1 billion debt that Blackberry just took on is more than enough to send the company into Bankruptcy within the next 6-9 months.
Blackberry does not have a viable plan for going forward. Taking on debt will only delay the inevitable as so many companies have found out the hard way. Nortel and Palm are just two such examples. Fairfax knew this, as did those companies he approached to try and scrape up the $4.2 billion or so needed to buyout the company. The result…no one was interested. So PW moved to plan B so to speak. Lend the company $1 billion, then take over the company when it cannot repay, or else make a killing if by some fluke, it does well. Yes, PW is a very smart man…obviously much smarter than those BB supporters who believe that what PW does will be good for them.
And have you not been aware that the company has drastically cut costs? or that they have a TON of Z10s they can sell for pure profit to build the user base in the coming quarters??
Experience!
“And have you not been aware that the company has drastically cut costs?”
Cutting costs has little meaning when inventory write-offs far outweigh the savings realized from the company’s cost-cutting measures.
“or that they have a TON of Z10s they can sell for pure profit to build the user base in the coming quarters??”
Pure profit? Not in the least! That is only a deferral of revenue. Writing off inventory in one quarter which is later sold in a subsequent quarter will require either a restatement of the company’s financial statements for the period in which the write-off occurred, or else realizing 100% of the revenue in the quarter in which the units were actually sold. Either way, this would result in a full repayment of most if not all of the income tax which was previously refunded as a result of the write-down, not to mention the additional selling and admin costs associated with selling the written-off product.
1. These are seven year debentures
2. These are ‘friendly’ creditors that would have no conceivable reason to force the company into bankruptcy
“2. These are ‘friendly’ creditors that would have no conceivable reason to force the company into bankruptcy”
How friendly do you think those creditors will be after Blackberry runs out of cash, and cannot pay the interest on those debentures?
I would suspect about as friendly as any financial institution would be after a homeowner suddenly stops making payments on his mortgage, or a store owner stops making payments on his lease.
Are you asking me if I think there’s a scenario where these debenture holders would force the company into bankruptcy?
My answer is – No.
PW infused BlackBerry with 1B in cash… it is not like he took money from the till! You mock Yogi, yet you don’t acknowledge what PW did for the company. They are now saddled with 1B in additional cash and 1B in debt. No worries, mate!
Keep writing, Yogi… we’ll either get rich together or go broke together, but my shares are staying with me for some time to come. 🙂
Don’t let the term unsecured deceive you, an unsecured piece of debt ranks junior to secured debt which may be charged against an asset but this junior debt ranks above equity. Furthermore, they also have a negative covenant in there which stops BBRY issuing any more debt unless they get involved.
Simple answer is, you don’t know what you are talking about if you can stand by that statement
…I just hate the fact that all of you blackberry zealots can’t admit this investment has failed. It’s like trying to convince Patrick Stewart that he has a luscious head of hair
Further, once the google play apps become available to Blackberry, as is currently being rumored, BB10 sales are likely to gain huge momentum, albeit that the lack of apps is more a perception than a reality.
What this BOD and PW just did to BBRY was a huge unforced error. Putting yourself up for sale – and then NOT actually selling yourself, is insane. Absolutely insane.
The one thing that I have going for me – with a pretty low ACB – is that in order for PW to get those shares at $10, he has to push the SP through my cost far earlier. Odds are that the $10 conversion price is just another ruse – like the $9 LOI. But we’re at $6.50 and I need $8. I’d close it out except that I do think for one reason or another – mainly that the MMs will pump in to hurt retail shorts – I think I will be able to get that $1.50, call it a wash, and move on.
He was hoping to attract bidders to save his investment. Well the (potential) bidders surfaced, the strategy worked. We learned that almost everybody was interested in something the company had up for sale. So we know the value is there.
By Prem’s own words he explained how one of the directors saved BB by convincing the BOD not to break the company apart and instead to soldier on. The new deal means BB pays 140 million less in interest and that was a key factor in creating enough breathing room for the company to attempt a turnaround in the years ahead.
Did you see the rumour that broke last night about 10.2.1 allowing for full access to Google Play store and having those Apps work natively on BB10? That is huge!
Combine that with a JV with Lenovo or someone else to manufacture the hardware and now we are in business.
Would you rather buy a cheaply made Samsung phone that is rife with security concerns or a BB10 device that is rock-solid secure and boasts a new platform that is already showing its incredible ability to expand?
Long BBRY Short Samsung
Okay, now I know you’re just messing with us.
haha, good one!
More wishful thinking, LYogi. Again, very dangerous. You’re just fantasizing about scenarios that will rescue your underwater long position. Be careful, my friend. Believe me, I want to see BBRY succeed for personal and other reasons, but no matter the trade or investment I try to keep a clear head and perspective.
In addition to being a financial advisor for about 25 years, I also have a very strong tech background (it was my previous business). I won’t bore you with my credentials – just trust me. There’s no way Google is going to allow Blackberry access to Play unless it’s a Blackberry fully running android – not an android runtime. Period. You may not understand the technical – and far more important – LEGAL considerations.
I believe both of those wishes of yours will never happen. Also, I think it is exactly the wrong direction anyway. Software and services is the key to any BBRY turnaround. Chen understands this. Forget about handsets. Irrelevant. That battle was lost and can never be won. Blackberry has a few areas of value. They need to leverage those areas. Look at the history of the PC business to see what is repeating in the mobile hardware space. It’s the software and services that counts. Repeating revenue model. How many PC manufacturers were there in the 80’s and ’90’s? How many are left standing today? Look at what IBM did. Look at what DELL is attempting to do. It’s obvious!
I repeat: the BOD are morons for having put up the company for sale and then not following through. Did terrible damage to Blackberry. How can any large, corporate customer still trust these guys? Do you know how many corporate sales were put on hold or canceled because of this bonehead move? I am so disgusted.
What *I* would rather buy is irrelevant. I am exactly the customer that Blackberry should NOT be targeting. (I have a Z10, btw). The question is: what are governments, the S&P500, and large organizations willing to pay Blackberry for? Whatever it is: provide it!
I no longer believe it makes sense to apply ordinary logic acounting or comparisons to the BB case. Whilst I don’t share the bears point of view in terms of valuation, they do have great help from management and constant shift of strategy or lack there of
BB has several prominent Canadian companies besides just the Pension funds. What the NEW BB is going to look like I have no idea.What I do know is that BB is not going to see 6$ again for a long time.
The desperation among the shorts is palatable now. They have become paranoid mouth breathers, soon to be bleeding money into our pockets. No matter how this deal has diluted our shares or how much a few shorts have tried to manipulate this stock…TEN DOLLARS is just around the corner.
Finish mopping the floor and throw out your Mopcap.
If you can’t actually see that the shorters have made a fortune then you don’t deserve to write anything
As you said the shorts Have made huge profits. That is past tense. I never lost anything…I never sold.
There are however a couple of investor who shorted down to about 3$ and they are the ones who will bleed. They are still kicking around and are in denial.
A lot of shorts said the company was bankrupt, going to disappear, the same as Palm….and all of you were wrong. WRONG!
The next 3 quarters are going to be the easiest double I ever made. By next Sept. I will be back in black. Me and Ms. Keys will be singin’ the Blues for you…