RE:RE:RE:RE:RE:RE:2023 Bond up to $70 yld 14% This mornMy bet is the headwinds are far worse than expected and the company will be desparate for cash. If they don't get, I think the $50 shareprice you predicted last month will be $49 less than you thought it would be. Nothing else makes mathematical sense to me. Again, show some numbers on how a deal would work for Pirate Equity, the company and common shareholders. Its baffling.
Lumberfeverlong wrote: Bonds are moving up becuase the market anticipates a transaction that will lower debt substantially which means bonds will be retired via proceeds of a capital raise closer to their face value. That capital raise will likely involve convertible preferreds at a much lower yield than the higher cost bonds. There might also be a common share component to it upfront, but not one that will wipe out current shareholders. The shorts are working overtime today becuase they know the day of reckoning is coming soon and it is theirs not the longs'. The company still generates in excess of $200M in annual free cashflow. Imagine how much better this company will look once they do a transaction that reduces debt significantly. Sure you can buy the bonds and watch them go up close to face value and make 30 or 40%, but the shares will increase in multiples from here. That is why the short chatter has gotten so intense since yesterday.
cg16 wrote: So is it correct to say that the bond action right now is opposite to the short thesis?