RE:EVERYTHING IS GOING UP EXCEPT US TODAY Let's break this down.......
Say CXR looses 15% of EBITDA from the 40% generated in the UK (36 million USD a year). Now we factor in the 5% tax savings from the tax cut, that brings in an extra 12 million USD. So we are left with an overall EBITDA loss of 24 million USD (4% decrease) a year. Now we factor in that the 500 million GBP debt is now worth 150 million less USD. It now becomes clear the effect of the pound will be negligible, and quite possibly positive if the currency recovers in the next two years and the GBP debt has been repaid.
These figures are from memory, so you can double check.
YourMindIz wrote: Is this the effect of the pound to dollar forecast from paridy to 1.15 to 1.20 . Or is it something else here we don't yet know about. And please don't post responses that a lower GBP is good for CXR. IT IS NOT. I know that cxr only has 20% of its debt in pounds and the other 80% is in USD. If the pound goes down and the speculation for another interest rate rise is now alive and well after the payroll figures today it will keep the USD up. So the management is out to lunch when they say this will not have any effect. PIssed off here at this P_O_S and lack of positive PR communication. We need a Friday afternoon buyout rumour. CALLING FOR ROLLER.....