Cliff's Announcement and Company Transition

You wouldn't happen to be talking about Chairman Maobama would you???? Lol

 

USA says there are no financial covenants they have to maintain under the new credit line. Ok so what does that mean? Mommy and daddy aren't gonna check their report card before letting them draw from the credit line? Most creditors don't check you earnings performance so long as you are making your payments. Besides USA doesn't have a full 125 mil credit line. From how I read it the credit line only allows them 28 mil with the rest going towards the old facility. Either way you cut it they just aren't in good shape. That new shareholders rights agreement is bogus as well considering the stock is only held by insiders and institutions right now. It doesn't look like there are any individuals holding this stock in any significant amount. The insider and institutional holding percentage adds up to more than 100% so Im guessing the numbers are off but still. The only people trading this stock right now are institutions so therefore there aren't shares availiable to absord more than 15% of the company. And if there were the shareholders rights deal won't keep someone from buying this stock up if they wanted to. If there are people willing to sell anyone can buy.

 

One more thing. What makes a stock price go up? Someone buys it for a higher price right? So when the insiders buy shares who will buy it from them in order for it to go up? Institutions? Institutions aren't stupid. They know that individual investors are the ones who play the biggest role in trading a share up or down.

 

Very funny After reading my post again I do think I came off sounding like a politician, however the principals are still the same. The only difference between the government and USA truck right now is the government can print money, if USA Truck tried they would all get arrested by the secret service.

 

It depends on the campaign donation given.

 

Something tells me that if the Dallas terminal isn't started yet, the idea is scrapped.

 

The main problem right now is not sales, or any growth plans the board and/or upper management might have. Today's closing stock price is $2.85! This is the main problem. The primary reason the stock is in the crapper is the debt the company is carrying. The company is still living on that dang credit card, and not making the tough choices needed to bring about a turnaround. This is one reason I am beginning to think this crap is deliberate, I honestly think the upper management wants to see what costs they can shed in bankruptcy. If I am right and I hope I am NOT this will not end well.