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.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: umbro who wrote (11810)	7/27/1998 3:07:00 AM
From: Tim McCormick	Respond to of 164684

Gary wrote - I think the interest due as shown (7.564M) is only for the two months May and June, yet the quarter is April, May, June. Next quater expect this to move up to 11.35, and the net interest to be something like -6.35M, or -0.13/share. Your post got me thinking(which is dangerous)so I ran some numbers. The 7.564M must include interest on the bank line. Because the notes are dated 5-8-98 and accreting to par on 5-1-03, the accreted interest to 6-30-98 is only 4.6322M. For the current qt. this number goes to 8.162M and increases every qt. because of a compounding effect. For example the interest accreting in the qt. ending 9-30-99 will be 8.9994M. At the same time interest earned on cash balances continues to decline. When the notes convert to paying 10% coupons in 2003 the annual cost will be 53M-ouch. Tim