RE:Q2 non-cash chargets9222 wrote: As Method pointed out in a past post, expect a non-cash charge (possibly large) from the debentures mark to market because the debs have increased in value Q2 and the company needs to update and increase the debt amount on the books. It is a non-cash charge that does not affect operations but the headline earning number may not look good with that charge. That isn't as important to the company as how much cash they generate and the adjusted earnings number.
If the smart people sold expecting the charge to drop the share price, it could be a case of outsmarting themselves if the market looks at the cash generated and adjusted earning number instead. But If the share price does drop, it could be a buying opportunity.
Also for people who don't already know, keep in mind that GCM had a non-cash gain in Q1 that boosted their unadjusted earning number. That one time gain won't be adding to Q2 earning, so it won't be earning added on top of earning.
As always, do your own DD.
ts9222 you may be right to expect a charge of some kind, could go either way. I was holding Eldorado gold and in Q2 they dropped a bomb, a 339 million post tax impairment charge and the market did not like it and the share price declined, hope that it doesn't happen here or GCM. GLTA