I think the bonds are a better holding over the next six months. Unless you want to lose 30% with no dividends to show for it.
I would not recommend letting your kids retire if an investment of yours would turn out well. Many wealthy families have done this, only to see the lives of their children ruined.
Sometimes if you go for the wild ride on the horse you will get thrown off. I think bonds that yield 8.5% in a tax-free account are a decent investment.
I thought the debt looked fairly attractive as well. Have some concerns about margins shrinking at the company, which are already fairly slim. Agreed that it may well hit the fives again in the near future.
If you like the company, you may just want to consider buying some of their exchange traded debt. The symbols are TANP, TANN and TANO. At the present time, I would not own the common shares and believe they have a lot more downside potential. The debt is best held in a tax deferred account, at least in my opinion.
It was real classy. Plus, I liked the way he wore his hoodie to the interview. I would have worn a suit and congratulated the other team for their efforts.
Kmart had $17 billion in assets and $11 billion in liabilities when they filed for Chapter 11. That is $6 billion in book value - and much was leasehold improvements that became worthless. Guess this is why I am the big CPA.
It is future rents that are due to lease obligations. As a CPA, accounting standards require that it is on the balance sheet - but I am not in total agreement with that accounting statement, as I really do not consider it "debt."
Most of the noncurrent liabilities are the lease payments due to HPT.
The long-term debt consist mainly of exchange traded bonds. QuantumOnline is a good place to provide details on the debt. I do own some of their debt. It is a high-risk holding, but yields about 8.5% and matures in the 2028 - 2031 general range. All three debt securities are trading below par now.
They rent the location, but do own their own sign, as HPT is not going to put in a piece of equipment like that.
This morning I drove by a TA location and they do own some equipment and fixtures. There is a big TA sign, which I am sure cost the company about $50,000 to install. It is very nice. Just in case they would need to raise cash, an ideas on how much they could get for the sign?
Would Sotheby's include list this in a future auction if the company needed to sell the sign?
More than one CPA is just plural, so there is no apostrophe needed. "CPA's" is not a word. The grammar police may arrest you later today.
Of course I have. However, for retailers that do not own their own real estate, it is often meaningless as most of the "book value" is in leasehold improvements.
Do you remember the old Ames department store company that went under? It had a book value over $10 per share. Oh - all of the book value was leasehold improvements in stores they did not own. How much is used flooring and shelving worth? HPT owns almost all of the real estate.
It's Deja Vu all over again.
They own very little real estate and rent almost 100% of their properties. Lower gas prices are causing margins to shrink. Management owns very little of the stock.
I'm reducing my price target to $1.175 now. Don't be mad at me that you bought at $15.
That is right. I am an Average Homeowner. However, I am also a CPA and think the stock will go to $2 per share.
Thanks for your nice comment and I appreciate your support. Much thanks.
You are welcome. You sound like a nice guy, not a smart investor, but still a nice guy. Glad I was able to help you with investing. Please don't hesitate to ask me any more investment questions.
Hope it is going well so far. This year I am going to have a couple of K-1's so I will likely put my tax return on extension.
They own very little assets and margins are dropping like a rock. Is everyone shorting now and covering at $2? That seems to be fair value for the company now.