Thrown to the Wolves

Why I am Selling Thornburg Mortgage

Dulcinea,

Now that you mention it, I do recall that there was a pending class action suit in process of which some of my shares fall into. I don't recall the specifics of the issues or what federal laws were involved.

Thanks for reminding me. I had forgotten about it.

Why I am Selling Thornburg Mortgage

Dulcinia,
Yes, I would like to see TMA come back as a viable company worthy of investment, and maybe it will someday. Unfortuneatly, the current bailout-investors that have a 7 year strangle hold on the company make that possibility very remote indeed, at least in the near term.

This is a story about a company that the more you learn about, the worse it gets. ie, with the 12% interest not enough for the scalpers, they also got handed to them 2.75 billion shares for $.01 each. At the same time the value of the current common shares are being diluted 1600%. Anyway you spin it, this spells disaster for TMA for a very long time, as not many investors will be attracted to buy shares in a company in such financial straights.

After dilution takes place and the stock price drops to a few pennies, they (the scalpers) will own 94.5% of the stock, then they will be selling at every uptick thus holding down the stock and raking in millions at every sale. For the scalpers this is just too good a deal and they are laughing at us poor schmucks who are the victims of there greed.

It makes you wonder what kind of a deal they offered the CEO Goldstone on the side that would make him aggree to accept such a horrendous price for the bailout. I wouldn't be a bit surprized if the CEO will also get a few million shares at .01 each (under the table of course) so he can recoup his recent losses in the millions. Meanwhile the commons get the proverbial shaft.

It's sad story but that's the way I see it. Like I said, I'm going to hang around with my 3000 sad shares and hope for some legal redress (in the form of a class action suit) that will probably never come, but you never know what is lurking out there.

I feel the pain of all the shareholders that thought they were investing in a well managed company but were in fact leveraged to the hilt so they couldn't ride out an economic downturn. They were caught in this debaucle and sold down the river. while others profited handsomely indeed.

Is Thornburg Mortgage Common Really Worth $3.88B?

Dulcinia,
Yes, I would like to see TMA come back as a viable company worthy of investment, and maybe it will someday. Unfortuneatly, the current bailout-investors that have a 7 year strangle hold on the company make that possibility very remote indeed, at least in the near term.

This is a story about a company that the more you learn about, the worse it gets. ie, with the 12% interest not enough for the scalpers, they also got handed to them 2.75 billion shares for $.01 each. At the same time the value of the current common shares are being diluted 1600%. Anyway you spin it, this spells disaster for TMA for a very long time, as not many investors will be attracted to buy shares in a company in such financial straights.

After dilution takes place and the stock price drops to a few pennies, they (the scalpers) will own 94.5% of the stock, then they will be selling at every uptick thus holding down the stock and raking in millions at every sale. For the scalpers this is just too good a deal and they are laughing at us poor schmucks who are the victims of there greed.

It makes you wonder what kind of a deal they offered the CEO Goldstone on the side that would make him aggree to accept such a horrendous price for the bailout. I wouldn't be a bit surprized if the CEO will also get a few million shares at .01 each (under the table of course) so he can recoup his recent losses in the millions. Meanwhile the commons get the proverbial shaft.

It's sad story but that's the way I see it. Like I said, I'm going to hang around with my 3000 sad shares and hope for some legal redress (in the form of a class action suit) that will probably never come, but you never know what is lurking out there.

I feel the pain of all the shareholders that thought they were investing in a well managed company but were in fact leveraged to the hilt so they couldn't ride out an economic downturn. They were caught in this debaucle and sold down the river. while others profited handsomely indeed.

Why I am Selling Thornburg Mortgage

User 174636

The Answer to your question: "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?" is because Goldstone & Company has sold out the share holders with a 16 to 1 stock dilution. They have sold their soul to the new investors and thrown the commons overboard.

I had 5000 shares, sold 2000 and still hold 3000 shares. I am holding my 3000 shares because I have very little more to lose percentagewise and I want to stay in the game in the event that there is any legal hurdles ahead.

Last time I checked, a 16 to 1 stock dilution made without getting the share holders approval is called stealing on a grand larceny scale. If TMA can get away with this and steal from the common shareholders then they deserve to go bankrupt. If it happens I will cellebrate.

Is Thornburg Mortgage Common Really Worth $3.88B?

to User 174636

The Answer to your question: "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?" is because Goldstone & Company has sold out the share holders with a 16 to 1 stock dilution. They have sold their soul to the new investors and thrown the commons overboard.
I had 5000 shares, sold 2000 and still hold 3000 shares. I am holding my 3000 shares because I have very little more to lose percentagewise and I want to stay in the game in the event that there is any legal hurdles ahead.
Last time I checked, a 16 to 1 stock dilution made without getting the share holders approval is called stealing on a grand larceny scale.

Is Thornburg Mortgage Common Really Worth $3.88B?

Hugh,
What happens if the common shareholders vote to not increase the outstanding shares that would dilute the stock? Could the shareholders block this insanity by not authorizing?

If this happened would this scrap the current deal and force TMA to renegotiate, perhaps with new lenders, and come up with one that is a little more equitable to the commons?