(Total Views: 1046)
Posted On: 04/27/2017 6:36:20 PM
Post# of 3333
I am mixed about the deal.
1) VERY happy about getting out of debt. It is critical to moving forward.
2) Concerned about how the debt holder plans on selling off these share.
Lets say the avg. daily volume is 14M. Per the agreement they can unload 1.4 a day. In order to clear out the 482M shares, it would take 344 days!!! The stock market is open roughly 252 days/year.
Obviously if the avg. volume moved up, so would the sell rate. This may have a long term impact on share price (if) they have a plan to constantly sell. If they have other plans to not sell this aggressively than they could blend in sales a little easier.
I think getting debt off the table will help them grow as a company. As for the PPS, it will depend on what they plan on doing with that amount of shares.
Just being a realist and looking at both sides of the coin.....
1) VERY happy about getting out of debt. It is critical to moving forward.
2) Concerned about how the debt holder plans on selling off these share.
Lets say the avg. daily volume is 14M. Per the agreement they can unload 1.4 a day. In order to clear out the 482M shares, it would take 344 days!!! The stock market is open roughly 252 days/year.
Obviously if the avg. volume moved up, so would the sell rate. This may have a long term impact on share price (if) they have a plan to constantly sell. If they have other plans to not sell this aggressively than they could blend in sales a little easier.
I think getting debt off the table will help them grow as a company. As for the PPS, it will depend on what they plan on doing with that amount of shares.
Just being a realist and looking at both sides of the coin.....
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Words to remember "Investing is a Marathon not a Sprint"
