Has it been delisted?
Have we delisted ourselves?
1 reply
Voluntary delisting is a good option. Aside from this stock being tainted it would follow the course of other KKR debt takeovers. Delisting does not stop the trade of stock, just not on any one exchange. This makes the price of the transaction really high since it is a manual account and there would be no margin.
On the other hand until today this has been a shorters playing field. Those of us that can do high frequency trading can take a very few dollars and by using our own algorithm can trade two to five times a day. That is the reason that the cap and the averages have been high. There were a good many puts that traded today which is typical for mid month and probably a good many placed. High frequency trade is fun at this risk level, but given the shadow of imminent delisting not many investors have the guts to make substantial puts.
If they announce layoffs and publicly offer a plan to get liquidate some of the real estate and they might gather enough interest to afford to be listed. But EDMC only has a very small portion of its shares in play, so that and the risk of the lawsuits will probably take it off the market soon.
The KKR strategy has been to take companies private which the other investors may be forced to swallow in this instance. I have done well with the stock but I always knew it was garbage in garbage out personnel and management.
KKR tends to hire and retain only the best. If you want a chance to be a high performer and can tolerate the place for eighteen months it may be worth hanging in there. But there often is just too much resentment built in employees of this type of organization for that suggestion to get much reception. KKR will certainly want to rid itself of employees who it considers as being in collusion with EDMC's antics--that is food for thought