Seeking Alpha
View as an RSS Feed

Pat Stout  

View Pat Stout's Comments BY TICKER:
Latest  |  Highest rated
  • Floating Rate Notes In A Negative LIBOR Environment: Might Lender Pay The Borrower? [View article]
    sadfacejack,

    I would be surprised if the ARM document does not have a floor, or minimum, interest rate. Best to check with the lender if there is no floor interest rate. Doubt lenders thought negative interest rates would (or could) be possible. Will you let us know what they say?
    Pat
    Mar 5, 2015. 06:39 PM | Likes Like |Link to Comment
  • Cliffs' New Bond Offer And Pilot Hedging Program [View article]
    Shorting Bill,

    The 2040 issue results in interest savings, but the other issues do not.

    New Secured bond coupon 7.75%

    Issue New Coupon Exchange rate effective new coupon old coupon
    2040 7.75 * .780 = 6.045 vs 6.20 coupon
    2021 7.75 * .81875 = 6.34 vs 4.875 coupon
    2020 7.75 * .821125 = 6.36 vs 4.80 coupon
    2020 7.75 * .860 = 6.665 vs 5.90 coupon.
    Mar 5, 2015. 01:20 PM | Likes Like |Link to Comment
  • IBM: Did The Smart Money Hold For $158 Billion Or Sell For $150 Billion? [View article]
    Stockinvestor81,

    If share repurchases add value, then explain why the cost of treasury stock is near the total market capitalization of the entire firm.
    Mar 4, 2015. 08:36 PM | Likes Like |Link to Comment
  • IBM: Did The Smart Money Hold For $158 Billion Or Sell For $150 Billion? [View article]
    CapVandel,

    I've enjoyed reading your comments. I would like to be long IBM as it could offer an extremely attractive dividend yield if they returned capital to owners, rather than to departing owners. In fact, I feel the stock could be materially higher if cash was provided to owners rather than departing owners. $12 discounted at 5% is $240, at 6% is it $200.

    The point of the article was that share repurchases do not add value.

    Mar 4, 2015. 07:29 PM | Likes Like |Link to Comment
  • Cliffs' New Bond Offer And Pilot Hedging Program [View article]
    Shorting Bill,

    There is an acceptance cap for the 2040 bonds. Might end up with 7.75% secured notes due 2020 and have some 6.20% 2040 bonds.

    I've run the exchange numbers and do not see interest savings. Somewhat surprising.

    Pat
    Mar 4, 2015. 07:17 PM | 1 Like Like |Link to Comment
  • IBM: Did The Smart Money Hold For $158 Billion Or Sell For $150 Billion? [View article]
    mjb0909,

    If they had confidence in the future, why don't they do a Dutch tender and permit all shareholders the opportunity to sell stock back to the firm? Isn't the "market" a better gauge of value rather than a handful of individuals?

    Or inform investors on the metric(s) is used to determine if the stock is under valued?


    Pat
    Mar 3, 2015. 08:44 PM | 3 Likes Like |Link to Comment
  • IBM: Did The Smart Money Hold For $158 Billion Or Sell For $150 Billion? [View article]
    Stockinvestor81,

    From the 10-K

    The increase in interest expense in 2014 versus 2013 was primarily driven by higher average debt levels, partially offset by lower average interest rates. Interest expense is presented in cost of financing in the Consolidated Statement of Earnings only if the related external borrowings are to support the Global Financing external business. Overall interest expense (excluding capitalized interest) in 2014 was $1,025 million, an increase of $36 million year to year.

    Hope that helps.

    Pat

    Edit to add:

    There is $542 million labeled "cost of financing" on page 117 of the 10-K.
    Mar 3, 2015. 08:13 PM | 1 Like Like |Link to Comment
  • IBM: Did The Smart Money Hold For $158 Billion Or Sell For $150 Billion? [View article]
    Dividend Sleuth,

    Your welcome. The dividend could be higher if cash currently provided to departing owners was provided to owners. That simple capital allocation move might also help support (or increase) the stock price.

    Pat
    Mar 3, 2015. 08:06 PM | 1 Like Like |Link to Comment
  • IBM: Did The Smart Money Hold For $158 Billion Or Sell For $150 Billion? [View article]
    Stockinvestor81,

    Interest paid on debt of $1.061 billion came off the cash flow statement, supplemental data.

    The income statement showed interest expense of $484 million.

    http://1.usa.gov/18LXkPI

    Pat
    Mar 3, 2015. 08:01 PM | 1 Like Like |Link to Comment
  • Barclays: GE's Immelt may quit within the next year [View news story]
    Mr. Immelt has done a good job given the firms high debt levels left by the prior management.
    Mar 3, 2015. 01:41 PM | 6 Likes Like |Link to Comment
  • GM Shareholders, Say No To Self-Nominated Board Member, Proposed $8 Billion Stock Acquisition [View article]
    c21vintage,

    A variable special dividend based upon earnings and a solid credit rating could be ideal.
    Feb 14, 2015. 12:40 PM | 2 Likes Like |Link to Comment
  • Memo: General Motors' Activist Group Net Stock Sellers In 2014 And 2015 [View article]
    Net seller of warrants.
    Feb 13, 2015. 10:07 AM | Likes Like |Link to Comment
  • GM Shareholders, Say No To Self-Nominated Board Member, Proposed $8 Billion Stock Acquisition [View article]
    independent84,

    Regarding corporate finance. As I recall the text book, it does not suggest that an entire firm could be sold for a price less than the cost of treasury stock on the balance sheet. Treasury stock cost equals the cash provided to former shareholders. However, Mr. Dell was able to take Dell private for billions less than the cost of the treasury stock.
    Feb 12, 2015. 02:59 PM | Likes Like |Link to Comment
  • GM Shareholders, Say No To Self-Nominated Board Member, Proposed $8 Billion Stock Acquisition [View article]
    Lurker123!,

    Thanks for the info. Sorry about the headline.
    Feb 12, 2015. 02:22 PM | Likes Like |Link to Comment
  • GM Shareholders, Say No To Self-Nominated Board Member, Proposed $8 Billion Stock Acquisition [View article]
    independent84,

    Feb 5 to Feb 11

    The Ford 4.75% due 2043 increased 14bps from 4.02% to 4.16%
    The GM 6.25% due 2043 increased 21pbs from 4.52% to 4.73%

    The GM bond widen versus the competition.
    Feb 12, 2015. 02:20 PM | Likes Like |Link to Comment
COMMENTS STATS
92 Comments
59 Likes