RE:RE:RE:Let's have a serious conversationToorealistic wrote:
what do you mean who cares about the forced conversion? Look at the two previous bought deals. The price was held down below the force conversion price for 11 months until they decided to let it run. You're entitled to your opinion but historical price action not justs from these past two bought deals but also from other bought deals in the industry proves that they will forcefully convert it when they decide to. Besides why would they want to continue to pay 6% on a hundred million dollars
They aren't really paying 6%, the cash is invested in "Cash and Cash equivilants" which is generally short term debt paying a decent percent (T-Bills, etc). So they are more than likely paying something like 3% realized rate.
6% is also ridiculously low interest rate for those of us who lived through the 80's and 00's. For a company with no real proven revenues when the deal was signed, that was a pretty decent and serviceable rate.
However, like I said, and like you said, the price is artificial, and will be elevated in the future once the convertibles are a thing of the past. My point here is these are low levels, and if you believe in the fundementals, why wouldn't you be loading up before all this debt is cancelled?
People are worrying about +-30 cents, when that is off the books this company is instantly worth north of $3 a share. That's why I am so confused about the amount of complaining literally 1 quarter into a brand new industry.
I think you raise many valid points, and I do enjoy our back and forth, so please don't think I'm trying to be difficult. I think we may just have different priorities.