"I don't think, they did a covertible dibenture[sic] offering just so that they can turn around and buyback stock."
It has been known to happen before. Indeed, some have floated straight bonds, then used the debt to buy back stock (e.g., SEG last year--sold $700 million of debt, now is buying $600 million of stock). In some cases, it is a good thing, not a bad one. Depends on how depressed your stock gets. This one is pretty depressed--no, make that VERY depressed. EXTREMELY depressed. Can give a very nice kick to earnings, then later on after the stock zooms to new highs on the juiced earnings, they could call in the convertibles, and minimize the dilution (if any at all). |
