PBY recently completed the purchase of $21 million worth of its 7.50% subordinated debt for $18 million or an approximate 15% discount. This will benefit them in two ways: (1) it will add $3 million to earnings (2) it will reduce interest expense.
Thanks Riggy----Actuakky I didn't know alot of that but the more pieces I put together the more I think Pep will stay Pep and there may be no room for an "Eddie" in Manny Moe & Jack. I guess if you buy at 6 & have some time it will be a money maker anyhow. Just don't put the money in the wrong bank.
MID, First of all, Eddie stepped off of the Zone Board , I believe over a year ago, which really doesn't matter one way or other, because Sears in not buying the Zone. Sears buys the Boys as a real estate part of its "Buff Box" business model. He secures cash flow by expanding the Sears Automotive Service Center concept to off site locations; converts Pep Service to Sears Service at each store location. The store portions are leased to Zone on terms that will comply will Billy Rhodes 15% ROI etc. The Zone will have a better chance of entering the commercial arena now without the image of competing bays; and secondly a greater concentration of store ownership to support the commercial,thirdly leverage its distribution network and lastly; knock out a minor competitor. Sears gets a chance of finally doing something outside the retail box, gets to leverage the Sears name in service, and start flooding the industry with craftman's tools at each Autozone location. I don't know how its where you are, but I see a many snap-on dealers holding a hell of allot of IOUs from the techs. Since there is no connection between Eddie and the Pep Boys, there is no conflict. However, I am sure there is a connection with some Hedge Boys, but you and I will never be invited to that card game. If it weren't for that one GET OUT OF JAIL FREE CARD that Eddie is holding, I would be buying every share I could under 6. That card can be played at any time and simply stated: "Sorry Boys the economy is too risky now; you understand; good luck with your parked positions, Love ya, Eddie". Riggy
Seems you have taken a liking to my wife and me although we've never met. You let your mouth run just like the oozing of Martha's ragg. If you let me know your address I'll send you a box to tic tac's for Hanukkah to help with the odor. Come to think of it I don't think Tic Tac's will work but maybe a can of Drano will.
Company only purchased $4.5 million last quarter for a gain of $900,000. Nothing has been reported this quarter. I am speculating about $10 million this quarter at a purchase of 70-75 cents on the dollar average. Price today would be about 69 cents on the dollar. Anything you're looking at is old news and already booked as earnings/early extinguishment of debt. If they bought $21 million this quarter it would be a profit of $6 million +/- not $3 million. DaninFW