The shareholder was too generous. This is a high risk loan as I see it. Convertible at .26 a share is way too high for a high risk 6% loan. Needed to be convertible at .10 a share at the very most.
Big if: Maybe the shareholder wants the patents for $2MM.
To some extent you are right. However, any "penalty" expenses will not be tax deductable. Nevertheless, even if you put total clean-up @ 30BB for BP alone, they can have that covered in a few years. The bills will trickle in over time...giving them time to generate the cash. As far as this boycott stuff..it's a joke. You are only hurting local station owners. Besides, this country has always had a short memory for these types of things. Boycott will be a thing of the past once this story is off the news.
They will survive. They pay 10 Billion in Dividends every year. They will be responsible for maybe 70% of the total cost.
I would expect a cut. However, I also expect it to be brought back within a year or two. The debt rating hasn't changed from all sources I have read...just the cost to insure the debt. They are two different things.
Disclosure...I bought a few hundred shares today.
Right or wrong, I am staying short (@43.03). Take a look at ^rlx and tell me that is just going to go straight up past 2007 highs...there is going to be a broad based retail pull-back in the near future. Time will tell. Good Luck.
Looks like Portugal and Spain might be the next Greece...that would be too much to handle. Euro collapse? Then what sky high interest rates?
Don't you think it is odd that news of a sovereign nation bailout is cause for celebration? Seems like just about all news is good news...but fundamentaly it's horrid.
High taxes and higher interest rates will stifle a lot of consumer spending and corporate profits in the future.
Ameritrade seems to have plenty of shares to short. I covered at $41.30 and then shorted a couple days later @ 43.03.
The retail index has been rocketing out of control...she is due for a correction soon and LULU will go down twice as much.
Go figure. Retail stocks are on a run lately...need to wait for that to turn around.