how it works and why it worksbay street investors don't do anything until they are "hit over the head" with a "no brainer". you might say they spend more time in Watering Holes than they do with their heads buried in SpreadSheets.
Well a NO BRAINAH has been staring them in the face for months, and they can't be bothered to even look up from their SCOTCH and SODAS.
Starting TODAY, these worthies are going to have to start modeling TOURMALINE with a a LIQUID ASSET worth about $750m on their balance sheet that they previously DID NOT. why now? because prior to today, they haven't been hit over the head by a 2 by 4 yet.
what does this mean? it means that LAST WEEK TOU was modeled with $1.75B of DEBT. This week it MUST be modeled with $1B of debt. Debt has been reduced by $.75b. That's the current value of the TOPAZ ASSET.
Now this was all known to anybody who takes time to read things and understand things. but like I said Bay street "playahs" have more important things they are doing.
when you value TOU with $1b of debt it beccomes FAR cheaper than any of its inferiour Peer group.
Sometime soon Bay Street may wake fromt their Collective STUPORS.
ps: if TOPAZ shares goes HIYER, TOU net debt goes LOWER