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Silver Standard Resources Inc. Message Board

  • wild_gold wild_gold Jan 10, 2013 5:02 PM Flag

    Yahoo shows they have $400M cash

    why the dilute for another $200M? Convertible debt is a killer, it's an automatic short arbitrage by the convert holders. Management works for the banksters, not the shareholders.

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    • goldsilver Feb 6, 2013 2:07 PM Flag

      This deal allows them to save 2 million dollars in interest cost every year.
      They are redeeming convertibles paying 4.5% interest and issuing new ones paying about 2.9% as a replacement.

      And they also pushed out the maturity from 2028 to 2033.

      20 more years before it goes bankrupt :-)

    • The notes cost 2.875% per annum. The conversion rate is 50 common shares per US$1,000 equal to $20.00 per common share. How is that a killer?

      • 2 Replies to domoreresearch
      • We dont know all the fine print but I have seen that all kinds of debt is a stock killer. Its not so bad depending on the type IF the markets are strong but other wise the more the stock goes down the more the debt holders short to lock in their gains. I would think after the last decade miners would have learnt. Far better to dilute the hell out of the stock and destroy the shareholders instantly than the slow bleeding death from a thousand cuts. Look at GSS with almost 3 mil oz's of gold and market cap of like 500 mil with working mines and its like a mid cap producer. But they also issued debt to retire old debt. With CDO's and other debt instruments these guys are not shorting a single issue but almost everyone. Some wont go down but then others go down twice as much. But if you think the company will be around in 5 to 10 years this kind of deals are twice and maybe a dozen in your lifetime deals. I am sure all thease miners will have 100 PE like they used to be in 2005.. But when? In the next 10 years for sure.. IF they are around.

      • conversion doesn't seem like should have been too destructive/dillutive. also, the press release said a $138 mil used to repurpurchase existing notes. i don't follow SSRI very closely as my position is pretty small.

        i would suspect that shorts / algos are pounding the stock on any news that is not AAA positive. They (shorts) do it to all the other miners with great regularity. As SSRI is HTB w/ Schwab, I suspect that is the case.

        production results appear good. i feel that trapped capital in Argentina is far more destructive than the captive financing.

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