RE: Why not a token buyback program?Just when I thought the share repurchase idea was the most stupid, Taurus speaks again.
Folks, there is $25m in long-term debt outstanding on Boyd. There is also $13m convertible debt outstanding and a further $5m on the line of credit partially offset by $3m in cash.
The $1,000 par value convertible debt is convertible into 212.5 units. Yes, they can be converted into units, but not at the market price as Taurus purports. Boyd would have to cough up $4.71 per unit. $4.71 * 212.5 units = $1,000. Therefore, convertible debtholders take no haircut. They're out at par.
**Cash is not available for any of these options** Don't listen to morons like Taurus who learn the investment business by reading "Rich dad, poor dad" and think they're an expert.
The key to Boyd is to focus on operations and squeeze as much juice out as they can and replenish the balance sheet. That is the only thing that can save them.