My sentiments exactly. Housing picture improving, new CFO on board, mortgage rates still favorable, much new interest in infrastructure, what's not to like?
Thank you Toronto.
Quite interesting to see this refinancing
A) Decrease the financial risk
They were able to push the maturity from 2018 to 2024. Therefore, they should be able to weather any cyclical downturn. And it protects them in case of rate increases. Furthermore, all of their debt will now be long term
By refinancing at a lower rate from 8.5 to 6.375% they are saving a bit more than 4 million on the senior notes
What interest me even more, is that they now have a pretty good war chest. They had 265 millions on the senior notes and revolver. They borrowed 400 millions. They now have 135 millions available.... And very interestingly, they were able to upsize their deal from 350 millions to 400 millions. So their Financial conditions is deemed quite good by debtors.
So overall, risk is going down and these guys did a pretty good deal. Expect more good news coming in from them.
Sentiment: Strong Buy
Want a good laugh? Click greenirishblackirish's name and look at all his other #$%$ comments. This guy only shorts stocks and bashes them in message boards in hopes of influencing price. My guess is he got burned shorting USCR and is desperately trying to crawl out of that hole.
That being said, the interesting thing about a recession is....its a recession. The majority of stocks are effected by a downturn. Looking at USCR's positioning in large metropolitan areas, I would say they are positioning themselves to weather a recession better than if they were spread thin through low volume markets. The construction industry is cyclical which can be said about nearly all industries. Read the Dodge report on the 2016 and 2017 construction outlook and you'll see that the outlook is positive with commercial construction spending financed preemptively and thusly it is predictable. Also, what is one part of society that will never go away? Infrastructure maintenance and expansion. That is a tax-funded market that USCR will always benefit from.
Sentiment: Strong Buy
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Well, we knew there had to be some faux pas during the year when they had to find a new CFO. We just didn't know what. Let's hope it's just this. About their debt, their debt isn't to keep them afloat. It's to grow the business and it gets paid down fast. They seem to have an excellent growth strategy and good heads on their shoulders. Their weak markets in the past ,i.e.:NY , have grown strong. Imo there is nothing but chugging higher. Every dip buy more.