Technology Stocks : ahhaha's ahs


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To: ahhaha who wrote (11826)10/8/2008 8:15:24 PM
From: frankw1900Read Replies (1) of 23364
 
Managers sell debt when they can't float equity.

Interesting discussion. I always want to investigate companies that offer rights and warrants. It's always possible the managers and boards see an uplifting future (as opposed to the issuances being a Hail Mary gesture).

When I was a kid it was standard procedure for mining and oil exploration companies (and small manufacturers) to offer rights and warrants. (The atmosphere surrounding some of these operations was reminiscent of the old Los Begas. Heady stuff for a young fellow...but fun!)

Who would loan money to someone digging a hole in the ground? You lent long term to hydro companies and toll road operators and the loan was linked to an income stream. Virtuous and boring.

That point is reached when you're relying on borrowed inputs and questionably achievable output as in no longer able to compete.

Exactly. trainweb.org 
en.wikipedia.org 
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