If they issue more options.... more dilution, correct my previous comments if they issue more options to.....less... than pennies per share!
Regarding profitability, I guess we agree that future profits are contingent on 1. recapitalization or 2. some of the bad assets turning good.
Everybody has to make their own guess.
I suspect the recapitalization is far more likely. Forced by the Feds. In this event...at best, pennies per share.
I would like to think the nonperforming assets could improve but the nonperforming loans they hold are of poor quality (at the time the loans were made Amcore was lending money to warm bodies) in an industry known for long deep cyclical recessions lasting multiple years (construction) under bad economic conditions (big price bubble) in a relatively vulnerable place (Rockford and overbuilt suburban Chicago). Rockford has one of the highest unemployment levels outside of Detroit and in the past has lagged a recovery in the overall economy. I just do not see a major recovery in Rockford or Chicago construction (the general economy may recover to a reasonable level) within the time period Amcore needs for it to occur.
Of course some will disagree. They have that right and if they are right they will make a small fortune.
Either way I hope I got your blood moving. The football games really stink until this afternoon.