RE:RE:RE:RE:Manipulation big time on TouWhy pay off debt if they can use cheap money to generate more FCF than it costs to borrow.
Did E say which company paying off its debt? I would bet their borrowing rates are much higher if that is their decision. Bonterra is a small company in comparison to TOU but I believe the covenants are such they want to pay off certain ASAP.
idleweiss wrote: Nuttal was just on BNN. He said that there was a big seller in Tourmaline the last couple of days and that is why the stock has lagged the other stocks over the past few days.He also mentioned that because the company was using variable dividends for most of its free cash, it was not proving easy to do a evaluation of the company and that could be a reason for its lagging performance.
On another not, I was wondering why Rose is carrying approx a $1 billion debt. Does it have to do with taxes. You do get a tax break. Is there any other reason? It's interesting that Nuttal mentioned a company that was not being allowed to buy back their own shares (I am not talking about TOU but some other company) by the banks to which it owed money. So they have decided to pay back their entire debt before starting on a buy back program. This is obviously not the case with TOU.