Post by
cg16 on Oct 04, 2016 10:43am
2023 Bond up to $70 yld 14% This morn
Opposite to the SP again..
Comment by
Craigbad on Oct 04, 2016 10:57am
The bonds wouldn't be a bad play IF you were of the opinion they could get a cash injection. If they were going to retire some debt there is some fast upside there from where they're to trading face value. If I was crazy enough to be long anything on this name it would be the secured bonds. I think the equity will be worthless.
Comment by
cg16 on Oct 04, 2016 11:30am
But with all the risk that keeps "increasing" why has the bonds moved up? They were $63.50 and 16+% yield last week and this week they are $70 and 14% yld? If they are moving to junk, shouldn't the price and yld be moving the other way?
Comment by
cg16 on Oct 04, 2016 11:46am
So is it correct to say that the bond action right now is opposite to the short thesis?
Comment by
Craigbad on Oct 04, 2016 12:05pm
My bet is the headwinds are far worse than expected and the company will be desparate for cash. If they don't get, I think the $50 shareprice you predicted last month will be $49 less than you thought it would be. Nothing else makes mathematical sense to me. Again, show some numbers on how a deal would work for Pirate Equity, the company and common shareholders. Its baffling.