Bonds going to be placed next week so the pain is going to end. The 10% unsecured are very interesting indeed. There are many companies with leverage over 6x that are cruising this market quite well, so I think all the fuss surronding SGMS is to be blamed by the fact the acquiror is much small and with a poor track record. As soon as the dust settles and the new management gets some credibility I think bond yield might drop substantially. I prefer the debt vs equity since the management priority in the next 3 years will be debt reduction: so no much space for buyback or shareholder-friendly moves.
A couple of weeks of pain. If it can reach the low $11 it is a great bargain for next year. Equities cannot outperform high yields for more...since monetary supportive will stay supportive high yield will catch up already in Q12015.
One of MS conviction calls in Asia xJapan for 2015. Trading at 28 times earnings. Not cheap but not expensive for a growth stock.
4Q music growth should re-accelerate sequentially; 2015 top-line growth should beat consensus, based on healthy music and gaming business; margin level is controllable by cutting discretionary spending.
If the above are true we'll see $100 in a benign environment for equities.
Support is here so let's see if it holds.
You're completely wrong. It's a decade alreadt valuation is dictated by EV/EBITDA. You can disagree but that's it.
free cashlow $65 million...better than expected...+ better guidance...stock still firing on all cylinders...I'm long the sub debt. After financing the deal it has lots of potential since it underperformed the common significantly after the summer.
Today at $11.80 good level to buy...there're not many cef trading at a double digit discount with almost a double digit yield. More the performance of the fund is one of the best in the sector.
Comparing apples with oranges is your sport? AUQ has a much stronger balance sheet and is a average cost producer. CDE can fly if silver doubles, it has a large resource base but high costs. Two different animals. Maybe the only thing in common is their bonds are dramatically undervalued and they can become acquisition targets since they have large cash in hands.
I bought some RFT before the new shorter notes (RFTA) were issued and I hold it. I think they are undervalued even if the fact the company is unrated is a minus in the current environment where lower quality junks have been liquidated by investors. Usually the first quarter of the year is benign so I cross my fingers.
Thx for the analysis. I think you might over-estimate defaults. I own several junks and I have never witnessed such a dramatic collapse like in the last couple of months. And they are NOT in the energy sector. It's a general collapse of credit due to the fact liquidity is extra thin, too much paper has been issued and brokers want to avoid absolutely inventories. I might be wrong but at these prices credit is a steal. Otherwise equities are due for a big drawdown to catch up.
All-stock transaction at a very little premium to market price. A steal. I think the company should reduce capex to the lowest level possible while scooping bagains like this. Lots of value in the rough, good companies at very depressed prices.
It is nothing "macro". Most preferreds are trading at the high of the year. I think there must be something company specific since RFT/RFTA that have shorter maturities are performing quite poorly. Anyway it is quite strange the equity is doing much better since they haven't increased levearge or done something that might harm bondholders with respect to equity holders. Strange.
really? I am busying the debt instead. It eill be very leveraged but in any case I don't think Perelman will let it sink. He can put on the table $1 billion easily if necessary.