"If stockholders do not tender sufficient shares and the board does not permit the tender
to close, we will likely sell our shares in the company due to our lack of confidence in
the current board," said Harbinger Managing Director Howard Kagan in a letter sent to
Openwave shareholders earlier this week.
Openwave has struggled lately from loss of business in its server and client business,
tough competition and shifting technology. In March, the company withdrew its guidance for
its third and fourth fiscal quarters, which end March 31 and June 30, respectively.
In March, the company hired Merrill Lynch (nyse: MER - news - people ) as its financial
adviser to help it explore strategic alternatives, including a possible sale. (See
"Openwave Shares Rally On Possible Sale.")
Shares of Openwave have dropped 29.1% over the past month. The company had been riding
high on takeover hopes but earlier this month the company said that its exploration of
strategic alternatives without any binding proposals.

Harbinger Capital Partners' expired tender offer for Openwave could mean that Harbinger
will dump its sizable stake in the company.

Harbinger's tender offer for Openwave Systems (nasdaq: OPWV - news - people ) shares
expired at midnight on Thursday. Shareholders tendered 28 million shares but didn't meet
Harbinger's requirements of 40.4 million shares for a successful tender. Openwave is a
software provider, primarily for the telecom industry.

Shares of Openwave dropped 45 cents, or 6.4%, to $6.56, on Friday. Harbinger was offering
to purchase 49% of Openwave outstanding stock at $8.30 per share. The total value of the
deal would have been $335.2 million.

Harbinger previously warned it could sell its stake in Openwave if the offer fails. Such a
move could depress Openwave shares because of Harbinger's large stake. The firm owns 11.1
million shares, or 13.4% of those outstanding.

"If stockholders do not tender sufficient shares and the board does not permit the tender
to

Probably, but if they earn 8 cents a share they can beat the mean estimate. But after
LEN's numbers and outlook, I think the report will be ugly, but who knows, maybe they
somehow turned things around at KB and found some miraculous way to beat the other
builders....But man, the bar IS pretty darn low:

Earnigs estimates:
Average: $0.07
Low: -$1.46 (that IS low...)
High: $0.47

Last edited on: 06-27-2007 02:02 am

That chart is really going to get ugly after tomorrow

If the doomsday predictions of the Bill Grosses of the world are proven correct, with
visions of escalating delinquencies and defaults followed by 100s of billions of dollars
of "toxic waste" unwinding, followed by liquidity constriction in other areas, shorting
the stock market will be very profitable. But, his predictions are considered to be on
the extreme, for now.

My point of this whole thread was to isloate targets to short this month, while the
unknowns are out there and fear is rampant, regardless of what is the reality. At this
point in the story, there is money to be made in the fear...

Last edited on: 06-27-2007 01:58 am

Options, I guess it might hinge on S&P Fair Value and S&P index futures and if that kicks
is program selling? right?

Looks like Bill Gross has another rosey outlook posted on PIMCO. Whether you believe his
doomsday stuff or not, he has some hillarious Paris Hilton references that are worth the
read; as well as the adjective "subprimely". Oh yeah, and this gem of a one-liner "To
death and taxes you can add this to your list of inevitabilities: the subprime crisis is
not an isolated event and it won't be contained by a few days of headlines in The New York
Times"
http://tinyurl.com/2h7t7c

Last edited on: 06-26-2007 09:31 pm

KBH earnings before the bell Thursday morning. An incredible amount of put volume in the
July $50 puts on Tuesday. 44,695 on 4,934 open interest.

KBH at 9 month low, and the 3 year low was $30.
On 6/26, the day before earnings, KBH ranged between $39.63 and $40.69, and closed at
$39.78.

Earnigs estimates:
Average: $0.07
Low: -$1.46 (that IS low...)
High: $0.47

Last edited on: 06-27-2007 09:19 am

Feeling like another ugly day setting up. As of 10:45 AM 6/26, S&P struggling to stay
positive and VIX in upper 16's.

Last edited on: 06-26-2007 10:55 am

Lennar Corp (LEN) was down over 2% today, the day before they report earnings. The stock
has taken a real beating lately after bouncing off below the 200 day average and heading
toward the 30s ever since, it is hard to believe it can keep going down after shaving off
30% of market cap since February, but a trend is a trend until it isn't. Should be a
volatile day tomorrow. Earnings before the market opens, and conference call at 11AM.

Last edited on: 06-25-2007 09:26 pm