I was just wondering if there was a way to determine this.
I would loan money at DXM 3% (or less) if I was going to loan money to GM at 1%. I would buy DXM debt at 7% if all the debt was re-issued at 7%. I would loan money to DXM at 5% if I was going to loan money for Dell to buy EMC at 5%.
It does not have any losses. It has profits every quarter. Depreciation is a non-cash expense. Profits (cash flow) are higher at DXM than GM and TSLA combined, yet GM gets to borrow at 0.8% interest. That does not seem fair.
DELL stock was like $40 in 2000, he let the bagholders sit and wait until the stock became massive undervalued at $13.75 the price of the buyout. I doubt if they even took a vote, I never got a list of the votes. Icahn calls Dell what he is he stole $ billions from the shareholders. Never buy a Dell product again.
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.