RE:Concordia debt compared to home mortgageadamchess wrote: hi folks, I thought Stockcoach's comparison was so good it should be repeated under a more appropriate subject title. Well done, Stockcoach1
For all those posters as well as analysts that continue to raise an alarm that Concordia’s debt is unmanageable, and may cause default or bankruptcy, have a look at the chart below. Nothing could be further from the truth. Comparing CXR to a homeowner and using proportionate numbers gives you a clear picture that every homeowner can understand. No bank would ever consider you a risk under these circumstances and your financial position would be very admirable. In fact CXR would have a lower risk than a homeowner, simply because the revenue is more diversified and more stable than the income of a homeowner. No job loss to worry about. If you can manage a $350,000 mortgage on a $100,000 salary and save $36,000 annually, then Concordia can easily manage the same. Oh, and don’t forget to factor in a 7-9% annual raise! HOME CORPORATION | Purchase Price all Assets | $508,900 | $5,089,000,000 |
| Down Payment | $158,900 | $1,589,000,000 |
| Outstanding Mortgage/ Loans | $350,000 | $3,500,000,000 |
| Annual Income / Revenue | $100,000 | $1,000,000,000 |
| Annual Expenses Including Mortgage / Loan | $64,000 | $640,000,000 |
| Annual Free Cash | $36,000 | $360,000,000 |
| Savings | $15,500 | $155,000,00 |
| Unused Line of Credit | $20,000 | $200,000,00 |
Thank you Adam. The title is now appropriate. It was Scruggs's suggestion and I wanted to acknowledge him. It certainly gives you a layman's view and understanding of the business. I'm certain that majority of homeowners are a lot more extended then in this example, yet continue to thrive.