I'd be inclined to apply the current debt cost (int. exp divided by avg. debt o/s for the year) as a crude measure for the discount rate for each entity. That figure produced $26B for WAG before when I did it last year. However, I have just found out that some of WAG's leases have a 95 year life, and they are not an issuer of 100 year bonds from which we could determine an appropriate rate. Also, don't have the time. Was hoping an analyst out there had done this off balance sheet comparison.
RAD has benefited from being under the regiment of loans with a lot of covenants that force fixed-charge ratios that don't deferential between on and off balance sheet debt.
When do you think equity-side analyst will jump on the bandwagon of Walgreen's hidden debt in the form of operating leases? They have nearly $26B in debt-equivalent associated with longterm operating leases -a form of off-balannce sheet debt in the eyes of any credit/bond investor. Both WAG and CVS are the guiltiest of ANY big cap equity. Now, that does not mean a positive for RAD, but it will at some point highlight a somewhat overlooked point when people throw around "debt" as to a reason why RAD is to remain underpriced.
I'd love to see an apples to apples of these three, showing on balance sheet and debt-equivelent off-balance sheet obligation which, regardless of how they are recorded, produce the same drain on free cash flow. I have a feeling RAD, having been forced to delever its cash-flow under its various loan agreements, will actually look better than its rivals.
At some point the committee has explaining to do. There is no reason why RAD is not in the S&P.
I imagine another 5-10% price increase when they are back in the index, with all passive funds having to buy.
Do you have anything to add other than rehashing Yahoo Finance headlines from several days ago about strip malls?
What is dying is BBY in strip malls. Supermarket and drugstore will be in strip malls for a long while.
It has been almost 14 years since they were removed from the index. I believe they are within months of being readmitted. They meet all the minimum criteria and are above the thresholds for many of the companies on the bottom of the list.
It looks like I closed my short to early. I just want one more pop to reload, and actually since the brokers have to source the shares, it is not easy borrow them when they are being dumped as they are now.
ANGI has a serious cash generation issue, and that will be the the straw on its back that will wake up the long -albeit late- as to the symptom of their flawed strategy. Still, I am not sue many longs will be able to separate the cause and effect and will blame the markets for inability to borrow or offer another round of dilutive shares.
What is SCAMGI?
I dad hoped for pop so I can reload my short, but we have not gone to high 12s since I closed my position.
Just received BofA's research (they have the lowest PO at $16, Neutral). Indeed capitalizing software in the manner of recent vintage is new for ANGI, which BofA terms "controversial". That is a huge point coming from a major shop. As I said in my last point above, this is a way they have masked expense growth to meet EPS targets.
Don't believe it.
I have no position now, but am looking to put on a short (again).
Company was removed from the index in 2001. It's market cap for much of the last year has been above many companies in the bottom of the list.
Any well grounded speculation as to when or if RAD could be back in the index?
Rationale, and views regardless of direction welcome. Thank you.
I flag any and all I have seen. Please do the same. They are trying to direct people to bogus research by pump and dump shops, often stationed outside US jurisdiction.
Many are now getting more clever and sounding occasionally in correct context because they copy and paste a real user's comments on the board. I have seen mine and other user's comments copied and pasted.
For a while the flavor du jour was "drinking this early in the morning" or something like that. Then it evolved with short one liners like "I fully agree", and now they copy and paste others' comments.
I just read all your prior posts for a handful of stocks. It looks like you are a bot working for pump and dump shops, spreading rumors about a bunch of companies.
Good luck with that.
If you are trying to spread bullish rumors, good luck. If you want to assess the trickle of information available based on rumors, then this is it:
ANGI is allegedly meeting with third tier ibank Needham & Co, who does a lot of private placements. If they are doing a debt deal it will be priced and structured like DIP as operations can't produce cash, and the balance sheet has been nearly fully manipulated with deferred revenue and stretched payables. If equity, this is welcome news for shorts & put holders.
They are meeting with third tier ibank Needham & Co, who does a lot of private placements. If they are doing a debt deal it will be priced like DIP as operations can't produce cash, and the balance sheet has been nearly fully manipulated with deferred revenue and stretched payables. If equity, this is welcome news for shorts & put holders.
My short & put are closed, but I am looking for an entry at high12s or 13s. Which side are you on?
myrtia_lenderking6847 is bot /spammer and is copying and pasting my comments out of context. Please report and ignore.
Seeley accelerated his sales.