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To: Broken_Clock who wrote (18666)4/9/1998 7:58:00 PM
From: Chuzzlewit  Respond to of 95453
 
PK, according to one standard financial theory it doesn't matter (the old "proposition #1"). According to others it does. Essentially what you get is enhanced eps if business is good but greater risk od bankruptcy when business is poor. The general sweet spot is a LT debt/equity of around .33. If debt goes up much above that number the stock prices take a tumble. Of course, this depends on the terms of the bond, burden coverage etc.

Regards,

Paul



To: Broken_Clock who wrote (18666)4/9/1998 8:04:00 PM
From: bw  Respond to of 95453
 
Natural Gas down .032 cents today....
Not a major drop...



To: Broken_Clock who wrote (18666)4/9/1998 8:40:00 PM
From: Bazmataz  Read Replies (2) | Respond to of 95453
 
But how do you think the market will perceive this? I didn't think GLM was strapped for cash, but could the market perceive it this way and hurt the stock? Traditionally, I've only seen stocks go down after filing like this...
BAz