DXM is more profitable and should pay 1% too. Lets drop payment to 1%.
I have an answer I just want to see if I am not making a mistake. Please post.
Just to show how corrupt the system is GM has 50 billion in debt, yet pays only 400 million in interest. A company with its history gets to borrow at 0.8% interest.
What are they doing. They are adding massive debt and also have massive dividend and buybacks and really no cash flow to pay for it. The add like $4 billion in debt a quarter, don't they realize this company has had problems with debt and bankruptcy. They now have $39 billion in debt when it was only $9 billion 3 years ago.
This would be horrible news. They can pay the debt, the problem is the debt is going to be due in about a year and a 1/2. We don't need any dopey bond-holders owning equity.
This would actually be good news if they can extend the term of these loans or lower the interest payment.
Why this company produces more cash than many companies that get debt at 5% interest. Have they even tried to look for debt?
This company has tons of cash (146MM) and it has tons of free cash flow (200MM). It has been paying extra debt every quarter. There is no reason to miss a payment. They should be going around looking for cheaper debt to buy out the overpriced debt they pay, someone would buy out all the debt at 8% I would think.
Walsh raise might have something to do with McKuskers wage too.
I did without depreciation it is profitable. Without interest payment it is very profitable.
Probably true, he probably complained that he is only going to get $150K a year before it goes bankrupt so he said give me more or I walk.
He doesn't get the 750K if the stock goes chapter 11. We could ask him to put 150K of the 750K, or 20% into DXM stock at the next shareholders meeting.
The trend is slowing also they said in the conference call things might improve in 3rd and 4th quarters at least for total sales.
However look at expenses, Selling, Cost of Service, General & Adminin combined
Thus total profit is rising and digital sales loss is slowing from 2.6MM loss from 4.6MM in the previous quarter.
There might have been 24% digital growth Q over Q. Sales dropped 29.6% from X. However dropped 22.1% from 12.4*X, doing the math I get 24% Q over Q growth.