Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (12084)	2/20/2001 4:39:42 AM
From: rjm2	Read Replies (1) \| Respond to of 78523

Touting ? I mentioned a few material facts. Here is another one..."The Company believes that results from operations have improved to the point where the Senior Notes can be refinanced at terms satisfactory to the Company." Hmmm, are you suggesting the company is LYING in their SEC fillings in addition to cooking the books ? Is it ok if I quote you on that ? Over the last few years the company has paid preferred dividends with stock. Now the company intends to begin paying cash dividends to the preferred shares rather than stock. Does anyone think this is a hint of what is to come? I.e. more preferred stock and a portion of the debt refinanced at prime + 1.5% EBITDA for the year was $24,925 mill up from $16,138 mill the prior year. Interest rates have declined a great deal recently making the 12.5% CLHB has been paying all the more attractive. And GEE, they have hired a top notch investment banker. But you seem to think that $38.7 million in common equity and $25.2 million in marketcap is going to go "poof" in 3 months. You have found a money machine. Short the heck out of it and get rich. Options ?? Hmm, they could refinance at a BETTER rate. They could opt for preferred stock.Or if they cant float bonds or preferred stock They could do a rights offering or offer warrants to the bondholders and/or preferred buyers. But You seem to have found a money machine. Short the heck out of it and get rich in only 3 months. I should remind everyone that the LAST TIME we went through this with a different stock, I was rewarded with a quick 25% increase in the share price. Perhaps you will fast become a perfect contra-indicator ! LOL On a more serious note, a rights offering would be a last resort I would hope, but I am fairly certain that if they raised another $20 million in equity, they would be able to find buyers for $30 million in bonds. If it comes to that, the shares could drop some, but I believe there is an almost ZERO chance of them filing chapter 11 in 3 months. What IS THE POINT OF YOUR IRRATIONAL FEAR-MONGERING ?