RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Jack Haze johnale wrote:
They can easily generate significant cash flows over the next year - which will make all this discussion irrelevant.
Can we agree that the point of irrelevance is where the returns on the equity far outweigh the returns on the debenture enough to account for the additional risk?
If so, what level of cash flows do you see that as being where we are indifferent being in the bonds vs the stock without accounting for the additional risk? It's a good starting point for the first question.
You are still ahead on our bet. So far, the stock has outperformed the bonds although its probably even with interest.