RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:XLY edible productsbdigginz wrote: The IB deal as it stands (done through a IB shell company ) is nothing more than a loan at 4% and is in fact other than the cash saved them from insolvency due to the last debenture call....simply a loan and as it stands today would without question be called and bankrupt XLY .
So Bdigginz let me get this straight. It is your belief that IB, a $25billion company, handed XLY $123million and took the risk of XLY almost certain bankrupcy (according to you) and not getting repaid in order to earn a 4% rate of return?
Do you really think anyone could possibly think that?
IB themselves have issued bonds with yields in the range of 3.5% recently, so earning a 4% return is essentially breaking even.
No investor with even the slightest bit a knowledge of the financial markets could possible suggest IB invested in XLY for any reason other then they believe it will be a good long term investment that will yeild them a solid return.
Now I can fully admitt the IB investment into XLY does not guarantee that XLY share will increase in value. Large companies do not always make investments that work out in the end. All companies, like people make mistakes some of the time.
But IB took more time the you, me or any other idividual on these boards to research XLY, IB is aware of how XLY raised money in the past, they are aware of the financing that allowed XLY share to be shorted and they are aware of every other ture, negitive thing you and others have posted. And with that knowledge this $25billion company with very highly educated people running it, decided that XLY was the best investment they could make into the Canadian Cannabis market. They spend probably millions of dollars on DD and legal fees associated with setting up the deal, they tied up $123 million of their money at a very low 4% interest rate. They then invested another $5.2 million into XLY common shares at a price 37% over market value in maintain thier 19.9% ownership stake.
The more you talk, the more you prove your ignorance.