The stock price of DXM will eventually go to $0....really simple math proves it.
$2.7B worth of debt on a phone book company.
DXM does ~$400m in EBITDA (which is dropping)
DXM interest expense is ~$300m per year
This leaves $100m per year for debt repayment.....it's going to take DXM 27 years to pay off its debt!
I'm sure there will be a lot of phone book being used in the year 2041.
The price spike of the past few days was a gift for the longs. We went short this afternoon in size.
this is precisely the type of response that makes me caution people ..not to play in the market if u cant understand and interpret financial statements..each and every month, both principal and interest are being paid down...per the BK amortization pay down schedules...approx 30 million of principal each month is being eliminated...last may we roughly had 3.4 billion..now at end of march we will have 2.7 billion...at end of 2014 we will have 2.4-2.5 billion..Kyle Bass thinks we will have 1.5 billion middle of 2016..I think it will be more like 1.7 billion..but of course if we were just paying off interest and eliminating only 100 million a year then obviously we would be headed to the stockyards...that isnt the case...and again i pity those who are headed to the slaughterhouse