Invesque Ord Shs T.IVQ

RE:RE:RE:RE:Q3 is out

[Rc0gburn]

What do you think of the debentures here? The 6% of 2023 are trading at sub 50c now. Its almost a 30% YTM. I think the balance sheet needs to be cleaned for sure, the stock is broken but they should have huge Operating leverage in the business to an emergence from COVID in 2021.

I dont like the risk return on the equity but if they can hold on and survive the next year, these debentures should trade back intop the 70's and 80's. I feel like it was a small issue and largely went to retail investors who are just punting them out ahead of YE and think the co. is done....

Any thoughts?

[Rc0gburn]

Capharnaum  - I just saw your comments on the debentures - I agree. The 5% of 2022 have also dropped below 60. The 2023 are now 45 . Feels like a good distressed buy.

[Capharnaum]

I have a preference for the Jan 2022 debentures as the only debt item that comes to term before they do is a $10M repayment to Magnetar. (Some Mortgages may need to be renewed as well, but those shouldn't be a problem and have an average maturity over 9 years) As of the end of Q3, they had $35.5M in bank with an average contribution from operating activities of around $6M per quarter. They

[2young2invest]

I wonder why IVQ doesn't do buybacks of those debentures at such low price.

[Capharnaum]

My best guess is that they wanted to deal with the Symphony situation first.  Since the Jan 2022 debentures can be redeemed with 30 days notice from the end of Jan 2021, they may deal with them upon closing of the Symphony deal.

[Stratocheif]

Ive been burned so many times with convertible debentures. I used to have dozens of them in my portfolio. Now just 2 or 3 and they are with the most secure companies. Big mistake not to get rid of ivq debentures last year. Now i have to go thru it. When a company runs into problems all they have to do is convert those debentures into shares. No one can stop them. Why would they redeem them? They

[RetiredCEO]

This post has been removed in accordance with Community Policy

[Capharnaum]

Well, in the terms, the debentures aren't payable in shares and Invesque needs to pay them back at the end of the term. Invesque would have to negociate with holders to have them convert to shares. Usually, holders will only agree to shares if there isn't enough liquidities to pay for them. In the eventuality that it happens (convert to shares), you can always short the stock and cover on