How can the Company say that it was renewed on the same terms when the margin on the facility went from LIBOR plus 0.50% to 1.25%? I would say a doubling of the margin means the lender is getting a little bit more skittish.
It is frustrating to watch this Company go up over the last 3 days as the consumer is still tapped out. The only solace is that they haven't issued the stupid press release that they do each quarter announcing that they are going to meet their long term projections. Maybe they will finally not be able to pro-forma their way out of the number.
I think the collateral is probably "ok" on that facility (except for Linens and Things) and quite honestly JAH has got the lender conduit by the privates cuz nobody else is going to step up and fund a fully tapped $250 million line...if the lender had not renewed it would have put Mahtin into serious difficulty and they didnt really have a reason to pound them. If the consumer stays crappy it is hard to see JArden making it through to the other side but mahtin and his wall street friends have made a lot of money messing with this thing. Mahtin delivers these announcements on option expiration day as a gift to the market makers to pocket premium.
man, you guys know a lot. How much money do you lose on the short bet if 1) the beat earnings 2) generate FCF to pay of their credit lines that you are so worried about 3) sell a non core business to pay down the credit lines 4) or how about the market just rallies for a few more weeks on lower oil about 6% 5) insiders signal all clear by buying more stock 6) economy grows 2-3%gdp in second half 7) wmt keeps posting mid single digit comps
The pain threshold is starting to rise on short bets on stocks at 5x EPS. The stock was recently over $30....that is 50% up from here and trading at 10x 09 $30.
You guys not only have to be right... dead right and bit of luck from a tough market...and the tough market maybe over. You see. you could be right but all the short term money short guys may bail before you guys are proven right--driving this thing. Look at stocks like HNI and TPX...yeah busiess sucks but sometimes its in the stock. So, get ready for a run to the high 20s, but hold your heads up high cuz you could still be right. Congrats. Problem is You'll just get run over first...and then you'll lose your nerve.