I suppose you could say since this is my blog, you could look into it and see my cynic's reflection. But I think as long as we're talking mirrors here you should take a good look at yourself. And contemplate just how much you wish it were my reflection looking back, cause it's a mirror, so it'd be yours. And I'm hot.

Wednesday, October 10, 2007

Stocks and Broken Bonds

So here's what just happened with Nova:

A couple days ago the GU (Genereal Union) submitted a request to METI, the Ministry of Trade, to assist Nova and demand that teachers be paid, and, at the same time METI demanded of Nova that they pay back outstanding refund requests from students who have canceled their contracts.

This means that there's something in the making to ensure that I do get paid, but here's what's more:
It was released on Tuesday that Nova has issued 200 stock warrants to two different trading companies in the Virgin Islands, which would issue millions of new shares of stocks in the company, should the companies regularly exercise their option. What that means, as has been pointed out in deft financial analysis, is that as the number of stocks increases, the controlling share of the current holders will decrease, especially Saruhashi himself, and the company shareholders, who combined control 71% of Nova's current stock.

Should all the stocks be purchased by these companies over the next year, their combined controlling shares will be reduced to 18%, as in, the stock warrants constitute a 400% increase in the total number of shares. If the value of the stock increases even 5 yen, the companies will break even, but moreover it means that Nova will have more money to actually pay people off, but at what cost? They've lost control of the company. The CEO will have lost control of the company, which shows that he's completely lost faith in the business and is willing to lose control of it to keep it afloat for just a little while longer while these two bottom feeder companies make some profit from the sinking ship.

This is good for me because it makes me feel a little more secure that I will continue to get paid a little while longer, until I get my visa stuff sorted out and look for a new job that might not start immediately. But, it also means that I had better damn well find that job, cause unless Saruhashi has some crazy idea for how he's going to eventually regain control of the vast majority of those stocks, his company is gone. These two companies have no intention of changing anything about the company, or running it once it's in their control, which is further evidence that they're only in it to turn a quick profit and be out of it.

No company is going to want to buy out Nova now, at least not until these two companies have bought all their cheap stocks, and then flooded the market with them. That means, if someone wanted to have controlling share, they would have to put a huge amount of money into those two companies as well. So, it's good for the traders, but...who knows what it means for us.

Oh well, it's the best news I've heard in a long time. No matter how much things improve here I'm still leaving, the deathblow to my wanting to work for Nova has long since been dealt, i want nothing to do with this company any longer than I have to.

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