Speaking of bozos............
Try watching the CNBC special on Costco.
You might learn something.
They sell large packages of stuff to consumers who can afford them and who have the space to store them until they are needed because they are relatively wealthy and have large houses.
As of the end of the conference call, XRX is at $9.75 down $1.42.
The company cut its Cash Flow and Free Cash Flow guidance by $300-$350 million for the year.
However, $200-$250 million of the cut reflects expenses related to the separation, which the company expects to complete by the end of the year (Form 10 expected to be filed in July).
Also, and maybe this is a bigger impact on the stock price, is that the company announced it would not complete and share repurchases in 2016 because the company wants to reduce debt in order to prepare the two separate entities for life on their own.
Anyhow, this selloff is a big over-reaction in my opinion.
The average Costco customer drives a Lexus or an Acura or a BMW and is upper middle class.
Every 10-K lists the amount of debt maturities y year.
The main issue is the large maturity coming up in February 2017.
It would seem the company will be pushing hard both operationally and financially AND with the rating agencies to get to IG before they need to issue to refinance that debt.
Unfortunately, it appears taht moody's is asleep at te wheel as they still have not stabilized the "Outlook negative" they had since last year. They probably should be getting close to "Outlook Positive" but they don't move that quickly.
if they can get the upgrade from S&P, they may have to go to Fitch to seek a rating. If S&P upgrades and Fitch gives tem an IG rating, Moody's keeping a junk rating will be meaningless as the bonds will be included in the Barclay's index of investment grade bonds.
Apparently, the company's filings with the SEC put HERC's EBITDA in the range of $600-$650 million.
That would leave HTZ's EBITDA in the range of $1 billion.
HTZ will substantially reduce corporate debt with the proceeds from the dividend that HERC will upstream coincident with the spin-off (actually the structure of the transaction will likely be a bit more complicated than tha).
The 200 day moving average is right at $5.00.
We just hit $4.90, so we are almost there. That would be the first time since
March of last year.
I noticed a couple of large block trades today. One was 100,000, the other was approximately 391,000 shares.
It has been quite a ride the past few weeks.
As previously mentioned the upcoming catalysts include:
1) The 16FQ2 earnings report (about 2 weeks or so away), and
2) Announcement of a decision on GF, or perhaps even the announcement of a transaction itself.
If the CFO and FCF in 16FQ2 are strong, it will go a long way toward sustaining this rally back up toward
Actually, it has been widely discussed on this board that it follows the price of oil.
However, logically, it makes sense taht they should follow the rails.
This is a naive comment, obviously.
They can only book orders when customers are willing to purchase.
They are not.
End of story.
I guess you are being facetious in your comments.
The new orders figure for rail cars was terrible and the backlog was drawn down sharply and will continue to do so until orders return.
However, the previous e.p.s. guidance was $2.00-$2.40 so a revision to a range of $2.00-$2.30 is not so bad.
I'm waiting to see what they have to say about the lawsuit now taht briefs have been filed.
If the facts are as found in this civil suit, why has there not been a criminal charge?
Or did I miss that?