$482 million in current assets. $1,141 million in current liabilities of which $620 million is owed to a bank credit facility. Those junk bonds are just going to pay off some existing loans and they will never generate any additional revenue. By the time the tennant is paid and the preferred shareholders are paid and uncle sam gets his cut that will leave about 22 cents for every share currently outstanding. Hence, my estimate of an 80 cent dividend.
To anyone that is thinking about buying this stock or has already bought, this company is very speculative. Chances are it won't go bankrupt but chances are very good that the dividend that looks to good to be true will have to be cut in order for the company to survive.
You want to call my posts stupid,fine, I don't care. I'm just trying to read between the lines and trying to see what is going to happen before it happens. I make a lot of money buying companies that get shredded by the market. I bought ASND at 24, MWL at 8 and VRC at 5 1/2. Now, if by some miracle (and I think it will take a miracle) the dividend is not cut and is deemed to be safe then all those people selling yesterday are going to feel pretty stupid for selling and will buy back in to lock in that healthy dividend before the price rises too much.
There is just way too much risk to be buying here. Management competence is in question, the financial strength of the company is also questionable and that fat dividend (to me anyway) is in serious jeopardy. Fridays action after the drop to nine may have been a dead cat bounce. You only have to look back a couple weeks on the PZN charts to see what I mean.