Post by
daddyMac9 on Oct 05, 2016 5:16pm
Writedown on Solowave
Given they were carrying Solowave at a fair value of $51.7M at June-16, and they just got $44.6M one would expect a writedown of $7.1M. Also they're selling units yielding say 15% and paying down debt costing ~5%, so until they announce another royalty partner their cash flow is significantly weakened.
Comment by
righand2 on Oct 11, 2016 8:43am
I have to wonder how anyone could have thought this was a positive event. Lots of issues with this business model, it would appear.
Comment by
johnathamilton on Oct 11, 2016 12:35pm
The investment was impaired and they were receiving nothing (0%) so getting their money out to invest in another company is a positive. But again, one has to wonder if they'd been had by Solowave since it obviously had the 44.6M with which to repurchase the shares. Hardly a win. At best, getting the chestnuts out of the fire. On another note, we have yet to hear about KMH.
Comment by
TickerTwit on Oct 11, 2016 2:24pm
I would compare the two on a cash-flow basis, not a yield equivalence. But I look at everything on a cash-flow basis. .