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XPRT - $STUDY And Beware Obvious Warning Flags

03/02/2011 06:37 PM by Dave Pinsen

Last week, when XPRT traded for about $0.70, Short Screen showed an Altman Z"-Score for it that predicted bankruptcy. Also last week, T2 Partners (Whitney Tilson and Glenn Tongue's firm) announced it was increasing its stake in XPRT (See Market Folly: http://seekingalpha.co... ).

Two days later, XPRT management announced that it was transitioning assets (practice groups, in this case) to creditors to repay the principal on its credit facility and that,

"The Company does not believe there will be any value remaining for the common stockholders after taking into account the expected net sale values of these transactions in the aggregate, and the use of the proceeds to fund payments to the Company's lenders and unsecured creditors."

( http://finance.yahoo.c... )

Unsurprisingly, the stock tanked about 80% on that news.

Rating:
4

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