RE:CJR.B - Corus Entertainment - Dangerously In DebtI disagree, the banks want to keep Corus as a going concern... why? because they like the juice Corus pays them. Its a parasitic relationship, so what does that mean? well if things get so bad that they exceed debt covenants i' sure the bank will give them flexibility due to the extraordinary circumstances. Does that make the stock attractive right now? probably not. If they cut divy the support over $2 is gone IMO, if not it could bounce back up into the $3 range.
I see better risk reward with spec gold plays right now lol. check out MIS eric sprott in this attractive location play next to KL... could be a grand slam IMO ;)
Stockwatcher435 wrote: What does a debt to equity ratio of 3.4 mean?
The Preferred Debt-to-Equity Ratio
A D/E ratio of 3.4 indicates that the company derives over 80% of its capital financing from debt and one-third from shareholder equity, so it borrows four times as much funding as it owns (3.4 debt units for every 1 equity unit)
It is highly unlieky that this is a recoverable situation if dividend is not cut immediately
Situation is not only compounded by heavy debt but also revenues are strained due to Covid and balance sheet carries significant balance made of 'Goodwill & Intangible' that will inevitably end up as impairments before this is over.
This can only end in one way.
Assets will be morphed into a new company and new stock ticker with a new batch of share holders
CJR shareholders will be stripped of company assets and be CJR shares disolved.
CJR.B 12 month target is ZERO
This will likely happen within next 12 months