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Cray Inc. Message Board

equitiesresearchdotcom 2 posts  |  Last Activity: Dec 15, 2014 8:17 AM Member since: Aug 24, 2012
  • equitiesresearchdotcom by equitiesresearchdotcom Dec 15, 2014 8:17 AM Flag

    Titan Machinery $150 million convertible Bond (2019) closed the week at a NEW ALL TIME LOW @ $72.00 w 12.18% yield.
    Also last week Titan disclosed in their 10Q footnote section that Wells Fargo made a 5th amendment to the bond covenants.
    A bond with less than 5 years to maturity yielding over 12% is a high risk investment. The novice investors should realize that the common stock is RISKIER than the Bond, and the bond is extremely risky.
    The bond market tell is that this company is in risk of defaulting, high risk.....else why wouldn't smart money be bidding the bond higher?
    only reason common stock isn't at $2 is because the shares are controlled by a handful of mutual funds who are asleep at the wheel. The question is are the mutual funds going to dump it here for year end tax loss purposes.....will they hold it so they don't show losses.......or are they just have no buyers for their shares above $5 so they just simply hold it and ride it out.......
    It looks like Titan longs will be okay until the company files bankruptcy...not sure how soon, but that is a big risk to common shareholders and bond holders.

    TO the longs who think this company has cash of $100 million, they have over $1 billion in debt also and negative cash flow for 5 consecutive years. They can no longer do an underwriting because of high debt levels.
    They have no options left.

    If they paid some of their bills/debt they would be depleted of ALL Cash and still still have $1 billion worth of debt on their books.
    I guess once stock gets delisted or goes to pink sheet the company would get a new ticker w like TITNQ or TITNPK or something....then this message board will go away too

    A bigger risk for management is the related party transactions. The board members are pretty much all related and they have a $100million agreement that they made between the company and an outside entity they have an equity interest in..(really smells)..plus over $20 million construction fees to another relative

    Sentiment: Strong Sell

  • equitiesresearchdotcom by equitiesresearchdotcom Oct 2, 2014 11:11 AM Flag

    There is really no upside to titan machinery. the company closed 8 locations this year and are carrying over $1 billion in debt. Titan machinery does not make anything. Titan is a retailer of equipment and machinery where they compete directly against the manufacturers Caterpillar, Deere, CNHI, etc.
    Titan just doesn't not have a good business model. the company would not be in business today had they not raised equity in an underwriting and debt in a second underwriting.
    With shares being held up here at $13 is what's wrong with the stock market. A company that is practically bankrupt that can trade at over a $200 million market cap because all the shares are being held tightly by mutual funds.

    Sentiment: Strong Sell

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