Hector,
I am sure their are others more experienced who are following this stock closer than me. Hopefully they'll respond soon. If the company is buying back the debentures with cash at this share price level, than I would think the co. feels it's better to save a bundle now, than later, when the price has gone up.(IF IT GOES UP) When a debenture converts, then the shares are diluted by the fact that there are now more shares available on the market. When a company redeems shares with cash it is usually seen as a sign of good will towards its shareholders and it also increases the equity of the co. Also when debentures are converting it tends to drop the share price down, unless the stock is HOT. When a co. lets its debentures convert, then it either doesn't care, (they've already got their money for the debenture) or they are just unable to buy them back at that particular time, or it's just cheaper for them to let them convert.
This stock, (IMO) is a long term play. But for the company to redeem this much of the debentures is pretty good news, if it's in cash. BY THE WAY, ALL OF THIS IS STRICTLY MY OPINION ONLY. I could be wrong , do your own DD. But I sure would love to hear from others, too.
radarluv |
