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Shares of Exide Technologies (XIDE -43%) collapse to a nine year low on a report that it's hired...

Shares of Exide Technologies (XIDE -43%) collapse to a nine year low on a report that it's hired Lazard and Akin Gump Strauss Hauer & Feld to advise on a restructuring, including a possible Chapter 11 filing. The company had initially engaged Deutsche Bank last year to lead a global refinancing, but the effort failed, and management is now pursuing more aggressive restructuring alternatives amid a looming September maturity on its convertible notes.
Comments (8)
  • Sometimes, you have to stick your neck out. Read why I believe $XIDE is a Buy. http://bit.ly/13QifXw
    24 May 2013, 01:39 PM Reply Like
  • The Lazard hiring was announced over a month ago, so effectively it plunged to $0.39 on no news whatsoever. There had been some insider selling before the April earnings call, so not rosy and definitely a risky play, but the opportunity to buy a company with >$1B in sales when the market prices it at $30M doesn't present itself very often. Had been watching this from the sidelines and went long at $0.40. At those levels the implied bankruptcy risk is disconnected from what a careful analysis would suggest.

     

    Their $100M order from the navy alone (http://bit.ly/YvizsC) is worth >3x what they're priced at right now, so if they survive there is good upside that warrants the risk in my opinion.
    24 May 2013, 02:14 PM Reply Like
  • Speculation has destroyed this stock. Exide should be announcing Q4 & FY2013 results in 2 weeks. You need a steel stomach on this one no doubt.
    24 May 2013, 02:25 PM Reply Like
  • There are rumors going around (http://bit.ly/10ptCIH) that they're negotiating a DIP loan, i.e. going for Chapter 11. Might be BS, but my stomach just isn't quite up to owning this extremely volatile stock until the Q4 earnings. Even if the fundamentals look better than the stock price would indicate, their management just can't be relied upon to announce bad news in a timely fashion, given the insider selling a couple of days before the Vernon announcement. I took my profit at $0.485; it went to $0.52 later, but can't complain about +20% and sleeping at night.
    28 May 2013, 10:52 AM Reply Like
  • the author should read the dates of his references - the report is about two months old!
    24 May 2013, 02:23 PM Reply Like
  • Sold out on Tuesday bought back today at .58 and averaged down below $0.44 thank you to the law breakers using Debtwire as the trigger for shorting XIDE. I look forward to selling these shares at a 500% market up!
    24 May 2013, 06:53 PM Reply Like
  • Can this company just pull a GM every ten years or is there some limit on how many times you can "kick off" the shareholders and just keep going. The company is worth fifty times what it's trading for, obviously people have one fear and no one's talking about it. Another GM... Anyone..?

     

    Anyone??
    27 May 2013, 11:36 PM Reply Like
  • 500%? markup? You think she's going back to 2.40?
    28 May 2013, 12:44 PM Reply Like
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