Clown-Free Zone... sorry, no clowns allowed Message Board

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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: TheStockFairy who wrote (178337)	7/9/2002 11:40:36 AM
From: reaper	Read Replies (2) of 436258

<<Remains to be seen if that debt purchase was a good investment>> the debt purchase could turn out to be a perfectly good investment and the stock could still trade at a dollar. it pays a 9% cash coupon and also has a call option to buy the stock at $3.41 (so the call is in the money right now). that's pretty expensive money, if you ask me. i would also note that Buffett invested $100mm in this deal; that seems like a lot of money but it is frankly pocket change to a guy who normally puts money to work $500mm at a time. if he got wiped out on the investment he wouldn't even notice; you do know that Buffett gets more in dividends from his Coca Cola holdings on an annual basis than he put into Level 3 (he owns 200mm KO shares with a dividend of 80c per). he frankly might have done this just to be a good Omaha corporate citizen. Cheers

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