How is that Yelp investment going for you snot boy? Did you buy more at 27?
The interest alone on all the debt is probably around $800MM per year. So not much left to pay down the debt. Do you see the problem here?
The exact price is not important. Lets just say I built a position with several transactions over the last two weeks. I cant predict what the Fed will do and when but I suspect an interest rate hike is coming sooner rather that later which should take Level 3 down 15-20% pretty quickly and then a slow spiral down to single digits over the next two years. Level 3 is one of the most highly leveraged large cap stocks in the world. I guess they could grow there way out of debt but that has not worked for 15 years.
You ask an excellent question! Level 3 has lots and lots of debt. Over the past 5 years they have taken advantage of falling interest rates to refinance a lot of the debt to lower interest rates. This is helped cash flow immensely. BUT.....They have just been kicking the can down the road. None of the debt has been retired, in fact its growing to finance acquisitions, which they need to do every 2-3 years to give the business a cash infusion. So my point is as current debt comes due the only choice Level 3 has is to refinance at higher interest rates. This will be its death spiral. Higher interest rates means more cash is needed to service the debt which means more refinancing at higher interest rates which mean more cash is needed to service the debt etc etc etc. So I expect a rush to refinance existing debt before interest rates rise later this year. But what cant be refinanced now will be subject to higher interest rates next year. So short term Level 3 treads water but as soon as the interest rates rise Level 3 stock falls rather quickly.
Stop advertising with Yelp and don't pay attention to the nonsense on there site. Keep doing the job you have always done
This advice is coming from a troll who thinks that Yelp has 140B users. How is that roof holding up?
Buy more. Average down. Mortgage the house, Buy as much as you can. Topeka and Snot boy highly recommend.
Hey Snot boy, Find that bottom yet? Just another buy gone bad. I do enjoy taking your money. Please buy more
Yelp could report a rocky second quarter, with traffic to the site declining for the first time ever, say analysts at B. Riley.
And it may be all Google's fault.
Yelp's traffic seems to have slowed following two recent Google search algorithm updates that appear to have affected all local search directories.
"On a year-over-year basis, June traffic could be down -3%," the analysts write, based on Quantcast data. "A Y/Y decline in traffic would be a first for Yelp in its history."
Although a traffic slow-down won't immediately affect Yelp's revenue or profits, it's a sign of the increasing competition between the company and Google, which have a troubled history
You mean ridiculously high valuation. Slowing growth. Oh yes and a customer base that hates them and sees no value in its high spend with Yelp. Not to mention the extortion tactics used by the company to extract additional revenue from its customers. Pay Yelp and it will suppress bad reviews. Don't pay, Yelp and it will suppress good reviews. Don't believe me go to Yelps own reviews. They have suppressed 12,000+ negative reviews of the company. Go read a few of them. Not to mention the Yelpers that walk into an establishment and demand freebies or they will write negative reviews. This I have seen first hand several times. So yes its rational. Its a bad business model that is not sustainable. The emotion comes in for the pumpers that offer no rational counter argument as to why a company that generates ~$500M in revenue (Not profit) should have a valuation of $3, $4, or $5B. Also the entire management team and its BOD are selling massive quantities stock which does not project confidence in the long term valuation. Lets see what the earnings call looks like in a few weeks. The last 3 earnings call have confirmed the excessive valuation and validated the short position. At the end of the day its all about the ability to grow revenue at a very high rate. Yelps numbers while growing as of the last call are slowing dramatically.
Lying little cockroach. Your bottom keeps getting lower and lower and lower. You know you will never recover from all the buying you did at 86.
But Snot boy said he bought more. And Topeka said buy and who was that guy yesterday morning that said buy more before it went down $5. Wait and doesn't Yelp have 140B customers. That's like 5 cents a customer? RIght? I mean if Yelp goes away who is going to tell me what to do?
But at what price Snotboy $10-$15. Maybe but I doubt.
You can still sell and recoup what little is left start again. Or I can just take it all away from you.
Snotboy did not buy at 36.50. Its was there for 3 sec and only one block trade was made at that price. You are a little lying cockroach. So 36-38 is your new range.
Well tomorrow is value reset day for Yelp and lots of others. By tomorrow afternoon you will be wishing for 40 again.
Here is another listening recommendation for Snot boy.
A little Black Crowes for the morning.
When your done with that try a little 3 Doors Down. You will relate well to the song "Loser"