re: EXXI - hitting new lows everyday

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Anyone tell me what this means?

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Its basically a pseudo poison pill to mitigate a takeover.

They have roughly 1.1 billion tax carry forward due to their substantial losses. This goes away or is substantially reduced if majority ownership changes. So they are issuing non-taxable dividend(so no current cost to shareholders) of one preferred share purchase right, fore each share owned.

If anyone tries to purchase more than 5% of shares or if someone owns over 5% and purchases more, the option to purchase will trigger and shareholders will be able to buy at a 50% discount with the exception of whomever triggered the event. Thereby diluting the shite out of the shares of the person trying to possibly gain a majority and thwart their future tax savings.

My guess is they are trying to say look we are guaranteeing you this future tax savings value so price it into our stock please.

The market is like you are going bankrupt anyway, nice try.