User 174636

Let Thornburg's Demise Be a Lesson to You

I read the Goldstone interview posted here. I have also read all the many posts on the boards of the “TMA Forum” that are now advocating dumping shares of TMA because of the dilution that was scheduled to begin on Friday, April 11th when Rainwater among others presumably begins converting warrants to common shares. What I do not entirely understand is why so many shareholders are voicing vehement opposition to this deal (some even disapproving the vote to increase the authorized number of shares). Why are these individuals doubting management's motives when it seems pretty “cut and dried”?

In his interview, Goldstone makes it clear that there are basically two options at this juncture:
>FIRST OPTION: “If everybody cooperates,……. THERE IS SIGNIFICANT UPSIDE FOR INVESTORS, based upon where TMA is today, and certainly better than where TMA would have been had the company not raised the new capital.”
>SECOND OPTION: “If they DON’T cooperate and participate and if they DON’T authorize and tender what TMA needs to have done, then, in fact, THE RETURNS THAT THEY’RE GOING TO BE ABLE TO EXPERIENCE ARE GOING TO BE GREATLY DIMINSHED OVER TIME."

The means to TMA’s survival appears to be quite plain and simple so why not go along with it? If you are one of the common shareholders who does not approve the vote to increase the authorized number of shares OR if you are one of the preferred stockholders who does not wish to tender your preferred shares… then I ask WHY NOT? I would like to know WHAT IS THE ALTERNATIVE? Some want to argue against the deal, yet they do not offer a feasible, attractive alternative. So what, specifically, does the opposition propose? I would like to hear of any decent, viable alternative proposal that TMA management might opt for.

All the accounting figures/calculations being tossed around are indeed impressive yet mind-boggling. How reliable is this data? Who knows? I am more inclined to go with what I know for a fact, and in this case the management of Thornburg Mortgage says it needs the cooperation and participation of the shareholders in order to recover and continue its operations. Why on earth would any competent shareholder invested in TMA choose not to support the company in which he/she has invested, especially when the only OTHER apparent choice is merely a chance of slim to none?