I might agree if the GDP growth does not accelerate in conjunction with any rate increase, But that remains to be seen. I fully expect the two to be linked. Earn more and you can afford to pay higher rates... pretty simple.
RE: open market buys... The practice you refer to is generally frowned upon by the bond market. It does not look favorably on companies that buy back outstanding debt at distressed levels. The market expresses this disapproval by demanding higher rates on any newly issued debt.
RE: open market pricing... Naive thinking. Corporate bond prices depend on company risk assessment and state of the economy and interest rate outlook. If the outlook called for recession and 0.1% 5yr rate and company was in great shape, the corp bonds could most certainly trade above face value.
Why should there be fear? Fear of what... a faster growing economy and a small bump up in currently non-existent interest rates? Duh...
I understand this. But my question remains... What benefit is there to having lower debt with higher rates so that interest costs remain unchanged? The only possible advantage I see is that the debt maturity profile is extended out to longer times so less pressure on refinancing.... nothing else. Not bad, but nothing to cheer very much about either.
Looking at PE of LO going into the merger is pretty much meaningless. Let's see where the PE of RAILO is a year from now... I think it will be much lower than that of either RAI or LO today.
Considering BTI traded as low as 103 in early January, 116 seems a bit high to me. I think I'll stick with LO until the deal closes and see if I can get it a better price then.
---Because of the significant debt reduction we can achieve, we don’t expect an increase in interest expense from this exchange---
How exactly does less debt at higher effective interest rates help CLF? It seems to me the only real gain here is a pushout in their debt maturity profile. That's not a bad thing I suppose, but in the shorter term there is no obvious benefit.
MT is not completely left out in the cold. They have a significant operational presence in Ukraine, which is in a similar situation to Russia with respect to FX, as noted it the report you posted.
@@@@@ArcelorMittal Kryvyi Rih is the largest full-cycle metallurgical company in Ukraine. Its production plants include a coke and by-product plant, a mining and benefication complex, iron-ore deep mining, and a metallurgical complex consisting of a sinter and blast furnace, steelmaking and rolling process departments.
Unlike in the case of HD-1080 or UHD-4K, there is no standardized definition of what precisely constitutes HDR. Until that is resolved, the moniker is meaningless.
Is it confirmed that it uses pholed (phosphorescent oled) technology? I only recall seeing references to p-oled (plastic oled).
ya gotta love that price spike a few days before the news broke... a nice opportunity for the big dogs to dump it on unsuspecting investors who thought things were maybe set to turn around. Take a listen... this dog had its last bark arf arf, now it's just whimpering before it gets put down.
up shiatts creek. This ugly dog was long overdue to be taken out back behind the shed and shot down. Brookfield bled it dry and now they will acquire the company by paying off their debt. Then they will clean up the mess made by management, make it lean and mean, and sell it for a tidy profit. Shareholders on the other hand, will get nothing.
To get any WJS article in its entirety, just do a google search on the preview text you have and you will find the link to the complete article... here's the crux of the one you posted about.
@@@@@Bombardier Children’s Stake in Company to Drop Just Below 50% Recent equity offering diminishes voting control of company founder’s four children By PAUL VIEIRA March 4, 2015 3:23 p.m. ET The four children of Bombardier Inc. ’s founder will see their voting control over the plane and train maker dip below 50% as a result of a recent equity offering aimed at bolstering the company’s balance sheet. When combined with the votes controlled by other relatives who are active in the company, family control sits at 53.20%, down from a pre-offering 58.24% level. Those relatives are Executive Chairman Pierre Beaudoin , grandson of founder Joseph-Armand Bombardier, and Laurent Beaudoin and Jean-Louis Fontaine, sons-in-law of the founder who sit on the company’s board. The details were contained in a proxy circular filed with Canadian securities regulators ahead of a special meeting the Montreal company will hold later this month to seek shareholder approval for an increase in the company’s number of shares outstanding. The reduced control over voting shares will put a premium on family harmony and agreement on the future direction of the company, which has struggled amid an ambitious plan to compete with Boeing Co. and Airbus in the smallest category of mainline passenger jets.
Believe it or don't. Today SHPG closed at 5250 pence on the LSE. So that target has a 10% upside.
@@@@Shire : *GOLDMAN RAISES SHIRE PRICE TARGET TO 6400 PENCE - 'CONVICTION BUY LIST' 03/03/2015 | 01:38am US/Eastern