RE:Diamond Selling Prices UP. cigarbutts wrote:
I do not see any reason you can't float a bon offering senior secured debt at a decent price interst rate and 5-8 year term.
My previous conversation between Mr. Moneybags and Mr. Businessman was too sloppy and obtuse for me to really make my point. So I'll try again.
There is only one reason for Mr. Moneybags to supply us with funds, no matter what the vehicle used is. That reason is for MR. MONEYBAGS TO MAKE A PROFIT, AND A NICE ONE, ON THE MONEY HE PROVIDES.
Thus Mr. Moneybags not only wants to see, but MUST SEE, US USE THAT MONEY TO MAKE HIM MONEY. He has no other motive to provide us funds.
Since we neither want nor need Mr. Moneybag's money to invest in production or marketing efficiency improvements, it seems to me that we have little that is convincing to show Mr. Moneybags why he should give us some dough.
To me our only argument is for him to give us money so we can pay the banks less interest and pay him more. All fine and good, but what does that do for us? Mr. Moneybags sure isn't going to give us money to stick in our pockets, for that sure does not increase his chances of a great return.
I think the banks have an interest in keeping us out of default, but that's the limit of any potential money source's concern. So I think the debt will be restructured to keep us going, and that should bump the stock price a little, but any dividends will be solely dependent on improved diamond prices.
I think that we are just unlucky that realized diamond prices are so low, and all we can do is wait it out with crossed fingers. Maybe we've been screwed by mistakes and/or dishonesty, but I doubt it. Perhaps I am childishly naive.
The company, as much as I love it, cannot make an argument that would convince me to buy one of their bonds.
I'll be the first to admit that I am not a financial wizard, and I will be happily corrected.