Post by
drunk@noon on Mar 23, 2016 7:50pm
THEY OWE $4.66 Billion Dollars!!!! CDN 3.5 Billion US!!!!
If they are lucky It costs over $333 million a year cdn or$ 250 US in tnterest expense just to service the debt. EBITDA means nothing becuase it doesn't take debt expense into account, and EPS means nothing when debt is over 2 times the market cap. EDUCATE YOURSELF. IF this was growting at 20% 30% that would be fine, but it isn't. Growth is under 10%. I mean, they had to pay 10% interest on a loan to close the deal. and have a lot of the debt financed at 7%
If ignorant canadian fund managers continue to ignore this, the stock can go up, if they take the debt in account and realeize what this means, it will be visa versa.
Comment by
sunshine7 on Mar 23, 2016 8:13pm
they generate over $600M to service the debt and no the bulk of the debt in the 4-5% range. Started at 7.25% with the 10% bridge loans but they will be paid by 2017. As time passes the cost to service loans goes down while revenues go up. Good luck with your short position... Not!