If the share price moves below 40, EMR will have trouble getting any type loan. Many of these corporations will have to re-capitalize like the banks if they lose much more in share pirce value. Alot of people will argue but this is plain fact. IR was unable to find anyone that could gain access to funding in a 750 million total value deal, final deal came to 370 mil for 60% and IR remained holding 40%. One thing is certain, IR realized the need for cash and this may allow them enough time for some type of economic recovery.
EMR true book value today is ZERO OR NEGATIVE!!
The unstable foriegn currencies with U.S. troubles could monkey wrench these executive thiefs and destroy what should have remained a perfectly strong corporation. EMR CEO and BOD have made alot of mistakes. Look for them to blame others!!!
Just showing that my posting was many days ahead of this article and many others like it. Ahead of the public knowledge is what a successful trader must be, not a book trader like most who show up late and wonder why they were left out.
Some post ahead of the market, I did this with EMR, see several of my other postings here. I also stated on Aug 12 that no one should play short once in the 42's. Maybe you I am out of this stock but if you had listened that day you could be up 5% to 10%, remember making money is based on percentages, if you count by dollars most will always lose. I am sure there will be several idiots tell me how its about dollars and not percentages gained, always makes me laugh.
I feel dumber for having read most of the posts in this thread.
Banks dont lend EMR money. EMR issues bonds which are sold on the market... people, banks, mutual funds, other investors buy them.
Stock price has nothing to do with issuing debt. It's the ability to pay it back (cash flow) that matters.