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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (57572)	7/21/2016 3:50:50 AM
From: Graham Osborn	1 Recommendation Recommended By E_K_S Read Replies (1) \| Respond to of 78705

So here's something I struggle with as the ECB squeezes 30-year corporates down in the 1-2% range. Suppose you had 100-year zero corporate and it becomes evident 10 years in that the company is unlikely to ever be able to repay the principal. What happens to the common? Interest should still be easily covered, so theoretically there is no immediate danger and there should still be plenty of 90-year optionality to come up with some way to make good on the bonds. The problem I see is debt metrics. Debt/ EBITDA is the typical covenant and is independent of interest rates. If Debt/ EBITDA is violated and lenders are not accommodating, early repayment is triggered. Thus, even for bonds with very long maturities, serviceability of principal is not "forgotten." I find it very troubling when people brush off debt loads formerly considered crippling based on the current low rates. All it would take is a minor recession/ earnings dip to trigger early repayment provisions on trillions in corporate debt. OT: Is this Pokemon Go thing for real? I'm in Kaua'i and even here pretty much everyone under age 30 is walking around playing it.

To: Spekulatius who wrote (57572)	5/9/2017 7:37:01 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78705

Dumped my position in DISCK (DISCA) today on mediocre (at best) earnings report. Growth has slowed down and cord cutting becomes a substantial headwind, imo. It looks like cord cutting rate is at about 3% of the households and next week, Spek's household will join them. Well, I know that anectodes should not be overemphasized, but I know that more and more people I know do without TV. We were hardly watching the regular TV any more, my son watches Amazon Prime video and I also promised to get the cancelled Netflix back. My wife watches her own streaming stuff from Asia (borrowed password - Haha ) and Amazon prime as well. I mostly watch news online and use the TV for games sometimes. No mutiny after canceling something that we had for almost 15 years, tells me that time are changing... We "invest" some of the saving back to get better internet (FIOS Gigabit) FIOS internet is good, but their TV hardware/GUI is incredibly bad and just another reason to do without.