RE:ManagementWarren Buffet once said....in the short term the stock market is a voting machine but in the long run its a weighing machine. Listen to what Mt Ganoza said. He got that 150 million debenture at a very attractive 3.75%. Quite remarkable today and it's an indication that people who know him and his company have confidence. He's going to use that money to pay off the line of credit that costs him twice that in interest expense and it will release him of restrictive covenants that came with it.
It's was a good business decision.
Unfortunately the average investor is pavlovic. They react without thinking. No logic at all to the drop in sp. Purely a knee jerk reaction.
Aa I've said before Mr Ganoza's focus is running the business on a strong foundation that shields it from risks. Is cutting the interest in half a good decision? Absolutely.
The share price will recover in the long run when good numbers keep coming in and the company shows itself with a better balance sheet because of this action