Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mopgcw who wrote (56312)	12/29/2015 3:06:46 PM
From: Spekulatius	Read Replies (2) of 78702

Bought someone ATW bonds too, for 53c. onthe dollar (6.5% 2020 notes). Yield to maturity is 25.7%. Right now still has $2.6B in tangible equity and $1.6B in debt (net of cash), so there is decent asset protection on the bonds. Even if the assets were worth only 50% of the book value, the bond holders would be OK. The issue with ATW is that most of their rig contracts expire in 2016, plus they have 2 more rigs on order that they just deferred and have not business for. On the positive side, almost all their rigs are new, so if there are jobs, they should be able to get business for them, but the day rates might be low. I do think that the bonds are a much much better deal than the stock, which is still going for $10+ surprisingly. I think they should do debt exchanges for stock

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next