With the economy improving, interest rates will go up with the result that low interest bonds will go down in price. That will enable the company to buy back the higher interest notes with the shorter run with the money they got from the lower interest notes with the longer run.
A very neat deal, I think.
Concerning future revenues, I guess the company will not only profit from ACA in general, but probably from the childhood problems of Obamacare as well, as they are eager to help all those millions of new costumers who would like to understand the system and who have problems joining it.
And, of course, there still is the huge Blue Cross/Blue Shield contract. So far, they have been very discreet concerning the profits they expect from it.
I would not be surprised if we see an explosion in revenues.
Big volume today. Might be people remember the last cv and nothing followed so they are fed up with it.
I think we are having a different situation today, and am expecting new announcements shortly. As you said, smart move, good for the longer term. Terms of cv very good.
Anybody who can get at loan at 1.5% for 7 years and doesn't take it has only himself to blame!
You really think interest rates are going to be below what they are today in a couple of years?
You really think the US economy hasen't picked up by than?
Choices today are so obvious - it's amazing how few people jump on them!
In theory, it is intelligent to issue convertible notes at this time of the economic cycle, with interest rates at their lowest and an economy on the way to recovery.
On condition, of course, to do something intelligent with that money.
Like buying back the outstanding shorter-term convertible notes.
Or like acquiring some other company that would add growth to the combined entity.
We can just wait and hope that some people have learned from past mistakes.
Given the earnings and the guidance, it should happen earlier than that.
Yesterday’s weakness might just have been some end-of-month clean up by some fund.
Martin J. Wygod on 7.05.13:
“We're in discussions; a number of companies have approached us. We've met with quite a few of them. They all want to tie into the reach we have on the patients side and the loyalty we have, as well as the unique position we have in the professional space. So we'll be making decisions probably over the next 60 days, 90 days in relation to which of these we will be partnering with and exactly what form those partnerships will take.”
They couldn't say anything during the tender.
Wouldn't now be a good time to come out with something?
Well, you got a tender where the company is going to pay $34 for shares that are traded far below.
And you got people like Cohen who have to get out of some of their holdings
And you have a president and quite another few idiots who would like to go to war
And so all of a sudden you have the tender over subscribed, and all those smart #$%$ who wanted to make a quickie are sitting on their position.
So what do you think is going to happen?
Yes, of course, the quickies have to unload, and they normally do that within the first few hours.
And most of the others, who didn’t get $34, they are going to wait, and some of the angst about another war might go away and people want to hang onto their stuff.
So, instead of constantly moaning, why don’t you wait a day or two and see what happens?