THIS may be the best short in CanadaSo my quick take on the EIF after reading September 30th statements :
- Almost $1 billion in debt ( long term & convertibles ) going into higher interest rate environment and turbulent equity markets
- $460 million in asset fluff ( Goodwill and intangibles - no tangible value to a banker )
- $597 million in equity - write off the fluff of $460 million and debt to equity is 7.03 to 1 ( 703,652 + 252.749 ) divided by ( 597,263 - 144,198 - 316,179 ) = 7.03
- $828 million of capital assets - doesn't EIF fly 30 year old planes ?
- $217 milion of spare parts inventory of 30 year old planes
- Pays a great big fat dividend of $2.19 / share which it can not afford - debt holders must just love to see this cashflow flowing ahead of them out to equity holders
- Cumulative earnings of $372,243 with cumulative dividend payouts of $407,023 (umm excuse me, how is that allowed )
- Bought a window company last year likely at peak cyclical valuation, nothing to do with airline business
- US denominated debt of 488,674 with a strengthening US dollar
Anyone wondering why this stock is heading for a new 52 week low ?
Would love to hear the bull case if anyone should be so brave.
No position at the moment.