Because the price they can sell is going to be very close to the outstanding debt. When that happens equity is 0. I have seen it happen before with CIT. It is like a mortgage to a house you cannot pay. The house still has value but the bank takes it.
The people will not be out of a job. The company will be sold to a third party and not much will happen other than the equity holders will lose all their money.
Too much debt and lower revenue will do that in a heartbeat!!! Selling the companies on a clean balance sheet will still leave tons of debt!!! No wonder big mouth bozo Ackman has his mouth shut!
Sentiment: Strong Sell
30 billion in debt will do that on a market cap of 3 billion.
Just so you know every analyst's dream is to work for an investment fund where he/she can get paid huge bonuses. Till then it is school to them. They are lap dogs who bark either way to get noticed. Often they get paid to say what others tell them .... Mizuho lowered target from $120 to $11 in three months. Lady, do you have a clue? The business cannot shrink 90% in three months. It is your incompetence that is the problem so SHUT UP!!!
I would love to lend money to this business. Assets well cover the debt if liquidated in orderly manner. B&L is a star and can carry the weight of others. When the debt is unloaded even partially the stock will fly in the sky. also do not trust analysts' reports. Mizuho's Irina Rivkin was preaching the stock could not get lower than a $100 in Jan, now she says it is worth $18. Lady go work at a grocery store! You have no clue!
too much debt needs boost of sales which they cannot do with no R&D and no price increase. actually they are lowering prices Get ready for a $5 stock before hearing the bell ring ... Even loud Bill has had his mouth shut for a month
no problem folks ... even in generic drugs there is profits to be taken
You just cannot double sales every three years and lose money, which they have been ... lying to investors and wasting money ... Bezos should be in JAIL!!!
Sentiment: Strong Sell
This stock is at best $100 a share ... One thing one can notice is that their forecasts (the analyst forecasts) have never come to fruition. Bezos keeps lying and funds keep buying ... This reminds me of 1999. Stay away fro this stock.
Irina Rivkind of MIZUHO was swearing about $100 stock value even if the world fell apart. Now she is calling $18 a 12 month target. Does she want to impress Ackman or just needs to get laid more ... Her brain needs a thorough cleansing is for sure. For a company with gross margin of 75% buying here is a steal ...
Sentiment: Strong Buy