The Super Terrific Happy Hour
- Thread starter Max E.
- Start date
Also opened a December 55 call position on my thread as a diagonal entry.
Edit: also moved MU to my short list. It's ready to break either way (and I'm ready to jump on board when it does).
They got a nice write-up in Barrons. http://www.barrons.com/articles/delta-air-lines-ready-for-takeoff-1501906439
Also opened a December 55 call position on my thread as a diagonal entry.
That'll do it. Look at MU too. Nice 28 inflection.
I like the look of an intraday EFII long today. It seems to be basing at 27, thinking about it, there is really no way to price this thing right now. It needs to feel things out and it looks like the market wants to try buying it today.
It just took out $28. I was looking at it over the weekend.... about 2 dozen law firms that specialize in this stuff smelled the blood in the water and joined the fracas.
Do companies have insurance for these things? Errors and omissions? I don't know that one; I probably should though eh.
Other than the legal costs... I don't see any change in the underlying fundamentals. Aside from legal charges...revenue and earnings going forward shouldn't change. I would think it should be heading back up. People were buying it at $47 last week. Its probably a steal going forward. But who knows.
It's directors and officers insurance (D&O), but any company of size will retain the first X million. But there is likely no cause for payout...to shareholders. D&O will offer settlement equal to legal bills for the first few lawyers in line who will accept it...
Sorry, at work now. Can address that D&O question a bit more clearly. There's only a few covered causes of loss (except for internal employment related stuff) that can trigger a covered loss. Employee theft where negligent oversight is alleged, but only if that employee is not a director, officer, or manager. In cases where shareholders are at stake, that varies from policy to policy.
Typically, if a company is of a certain size, there's no reasonable coverage because limits that an insurer could extend (and even reinsure) would be tiny in consideration of a $100bn market cap. So they may purchase a policy that provides a large defense limit and a (relatively) small damages limit so they--basically so they can offer settlement rather than fight a multi-million dollar case where only hundreds of thousands are alleged to be lost.
Given EFII's market cap, I suspect that they do carry insurance and of reasonable high limits. So, I'd guess that settlement in this case is more likely than not, and an early and quiet one.
This is really one thing I believe congress should intervene on and shut down. It's basically shareholding screwing shareholders because they alleged to have been screwed by boards.
Typically, if a company is of a certain size, there's no reasonable coverage because limits that an insurer could extend (and even reinsure) would be tiny in consideration of a $100bn market cap. So they may purchase a policy that provides a large defense limit and a (relatively) small damages limit so they--basically so they can offer settlement rather than fight a multi-million dollar case where only hundreds of thousands are alleged to be lost.
Given EFII's market cap, I suspect that they do carry insurance and of reasonable high limits. So, I'd guess that settlement in this case is more likely than not, and an early and quiet one.
This is really one thing I believe congress should intervene on and shut down. It's basically shareholding screwing shareholders because they alleged to have been screwed by boards.