Amira still plans on completing the bond deal. I wouldn't expect them to file the SC13 G if the means to make the purchase wasn't still on-track.
At least that is what I think. Maybe they would do it but I think not.
Do you still beat your wife?
It is impossible to respond to such an accusation.
It is not inconceivable that they will be able to close the deal. Inventories are easy to verify and it is a commodity that is unlikely to plunge in value so assuming the legal system works there is not much doubt in being able to recover the security. This would be true in US, whether it is true in In India I dunno.
Debt cost would likely be higher.
The decline in oil prices might ultimately be a bigger deal than the court ruling.
No official statements to support my position but it has to be true.
Long on allegations and short on factual statements. I don't care if you want to pump something but don't make factual statements and not expect to be challenged. I don't mind someone pointing out any errors I make.
Just in case anyone is buying this, Ibiquiti is not a big seller of microwave backhaul products and their performance has no reflection on potential Dragonwave performance except to the extent they have the potential to disrupt the microwave backhaul market. To date they have not done so.
I've never understood why Wynn is holding her to the stockholders agreement. He says he isn't concerned about control in the Okada litigation but then he refuses to allow her to sell. He says the company couldn't afford to pay Okada for his shares but he pays out billions in dividends.
I like the guy but I don't trust him either.
Don't think anyone really thought they would hit the expected figure. They had good expense control. Could have been much worse.
Just to point out a few points worth considering.
Note how the estimated value uses EV to sales figure for companies in the communications equipment sector rather than the microwave backhaul sector to determine a target price. Communications equipment makers who earn 35-40% margins versus the 15-16% or so earned by DRWI. Note that maybe it pops up to 20% on occasion but 15-16% is relentless.
It is particularly misleading because he was referencing those microwave equipment makers earlier in the write-up. Why not benchmark against the other microwave companies?
He also uses "out-year" estimates to calculate value. That isn't so unreasonable but why not use out-year values to the non-comparable companies you are relying upon? At least discount the value. It more or less shows that he decided the target value he wanted to use and backed into the assumptions he had to make.
Last, isn't it kind of weird to make a comment about how Dragonwave is capable of generating cash? A company that is only covering 65% of their fixed costs and has been on a journey to cash flow break even for what seems like forever.
They paid out almost all 3rd Q earnings as dividends but I don't think I'd go so far as to say they borrowed cash to pay dividends. Fourth quarter they certainly will have to run down cash balances if they keep paying but they have enough cash and borrowing capacity to pay more than earnings for a good while if they want to.
Not cash constrained at all, unlike what they are arguing in the Okada litigation.
Look at their financial results. They are far far superior to Dragonwave and superior to Ceragon.
They don't insult their shareholders intelligence by issuing silly press releases claiming strong performance and optimism about really lousy performance the way Dragonwave does. If Dragonwave reported those results they would be shouting from the rooftops, "EBITDA positive" and the share price would probably triple for God only knows what reason.
They aren't going around saying things of questionable validity the way Ceragon does like all our deals are on the same terms as others in the sector. If others have DSOs of 160 days they are sure doing a good job of burying it in their financials.
They have certainly lost a lot of money but they have always seems honest and transparent. That is the key difference. Oh, and at least over the last few years, they've lost a lot less money than DRWI and CRNT. Making money within the confines of the law is what business is about.
I don't know, it isn't like the guy is an idiot. He was a visionary when it comes to Las Vegas.
Outside of Vegas I don't think anyone would say he has been out in front but at least he was in Macau and he has been a solid performer.
The dividend is interesting. They can probably keep it if they want but (1) they are highly leveraged so a decrease in revenue makes it tougher to keep, (2) the high dividend is inconsistent with the arguments being made in Okada litigation. At some point they might want to try and move the facts to support the arguments but I doubt it.
They addressed the cash. Was just an issue with AR collection timing. They collected in 1st week of 3rd Q.
Talked about structural changes. Whether that is selling out, buying someone or just cutting infrastructure I dunno. Seems hard to believe they could cut expenses much other than that outrageous audit fee.
No idea on share price. Seems like it is fairly price around $1.40 or so given the loss they are going to have in 3rd Q.