Post by
Tree2tree on Nov 05, 2024 10:05am
The big disconnect
If the common shares still have value, then the debentures should end up at 100% plus interest arrears.
Conversely, if the debentures are only worth 50% of face value, then the commons are worth less than zero.
It's true that the commons potentially have a higher upside multiple. But the multiple could shrink drastically if there is an equity raise. My suspicion is that there are still few investors who take time to figure out the debentures, as compared to many who will take a gamble on the beaten-down common shares, supported by falling interest rates.
Exciting to watch how it will play out.
Comment by
rad10 on Nov 06, 2024 6:11am
lol - commons "less than zero ". Zero is the limit of the downside tree2tree...... Debentures looking more positive but still a gamble.