GREY:WONEF - Post by User
Post by
DTM5on Jun 20, 2015 12:03am
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Post# 23851316
The problem is.....
The problem is.....The debt.
They have 168,000,000 of debt; 73 million in loans; 95 million of debentures
Revenue / EBITDA / earnings are expected to go down this year and next
All this debt is coming due over the next several years.
Look at the net earnings current and projected and guess if they can manage to pay these down / off?
Not gonna happen. So the stock will continue to stink until they figure out a way to deal with this.
Investors seem to be betting against them solving this problem right now.
Probably not going out of business any time soon BUT they have some tough decisions to make over the next while.
Management didn't clean up the debt when times were good (they should ahve done a massive financing at $8+ and cleaned up thier balance sheet). But they assumed they dodn't need to and they could continue to walk the line. Many companies are in this same position; Some are doing fianncings to clean things up (WJX). But they have stonger balance sheets and clearer revenue projections.
it will be an interesting 12-24 months. GLTA