williamcarswell

williamcarswell
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  • Buy Kraft Heinz Company For Safety And Cash Flow In A Tumultuous Market  [View article]
    One thing not mentioned in the article is that roughly $10 billion of 9% preferred that BRK purchased to finance the original Heinz LBO will become callable in June. If KHC can refinance this with bonds similar to those issued this month by BUD (3-4%) expect substantial cash savings and additional balance sheet strengthening and dividend hikes.
    Jan 31, 2016. 09:49 PM | 2 Likes Like |Link to Comment
  • California Resources Corp. - Investors Should Fear The Worst  [View article]
    A couple thoughts:

    This isn't a fracker. These are long-lived conventional reserves. Elk Hills and Teapot Dome were originally part of the US Naval Oil Reserve before being sold. So unlike so many projects, the reserves here are solid.

    Interestingly the author uses par value (100 cents to the dollar) on the bonds plus the equity market value of the stock to come up with a cost of $9 per boe for the proven oil in the ground if you could hypothetically buy the whole enterprise at those prices. But the bonds aren't at 100, they're at 30 and in BK, the equity would get wiped out. Thus, buying the bonds at 30 seems like a way to buy very low cost reserves. The common stock is more like an option at this point, but the bonds pay you 20% cash to hold them until you get par or get restructured.
    Jan 1, 2016. 12:54 PM | 2 Likes Like |Link to Comment
  • Kraft Heinz reports Q3 results  [View news story]
    This was a messy quarter. Big charge for transaction costs, also expensive Buffett preferred from HNZ deal which will be refinanced down next year. No real surprises, but dividend hike was nice.
    Nov 5, 2015. 06:09 PM | 1 Like Like |Link to Comment
  • Coca-Cola, PepsiCo competing to invest in yogurt maker Chobani  [View news story]
    Actually makes WWAV more valuable
    Oct 12, 2015. 07:05 PM | Likes Like |Link to Comment
  • Partial victory for bond insurers in Puerto Rico case  [View news story]
    What are your thoughts on the strength of the COFINA lien?
    Jul 8, 2015. 11:07 AM | Likes Like |Link to Comment
  • DuPont leads Dow losers after dim assessment of Chemours spinoff  [View news story]
    You are the archetype of the misinformed voter. Ellen loves you. Peltz expressly warned about loading CC with debt as it would threaten its dividend and financial flexibility. Now after the fact, the analysts reach the same conclusion
    Jul 4, 2015. 09:51 AM | 2 Likes Like |Link to Comment
  • DuPont leads Dow losers after dim assessment of Chemours spinoff  [View news story]
    I wonder how many people posting here didn't vote for Peltz or simply didn't vote at all. Before the vote count, there was lots of sanctimony against activists. There was even a false flag issue created which suggested Peltz targeted Kuhlmann because she was a woman (not because she is incompetent, which she definitely is).

    I wonder how many of those whining here today wish they could recast that ballot?
    Jul 3, 2015. 09:07 AM | 2 Likes Like |Link to Comment
  • DuPont leads Dow losers after dim assessment of Chemours spinoff  [View news story]
    Where were all these analysts 30-60 days ago, when Peltz was warning of just such an outcome? It might have mattered when there were still ballots to be voted.
    Jun 28, 2015. 02:49 PM | 1 Like Like |Link to Comment
  • Accretive Capital Partners Believes HC2 Holdings' Offer For MCG Capital May Be Superior Than PennantPark's  [View article]
    If Falcone tenders, I think he wins
    Jun 12, 2015. 12:15 PM | 1 Like Like |Link to Comment
  • Falcone ups pressure on MCG Capital with boosted bid  [View news story]
    Actually, the MCGC people who are "negotiating" with PFLT are future PFLT board members and employees. "Being honorable" has nothing to do with it.
    Jun 3, 2015. 09:27 PM | 2 Likes Like |Link to Comment
  • Accretive Capital Partners Believes HC2 Holdings' Offer For MCG Capital May Be Superior Than PennantPark's  [View article]
    Falcone out tonight adding a nickel to HCHC's offer, raising it to $5.30 and giving the MCGC shareholders the choice of a convertible preferred if they so choose. Meanwhile, PFLT job applicants will continue to say $4.75 is better.

    http://yhoo.it/1GlkgUR
    Jun 3, 2015. 06:57 PM | 1 Like Like |Link to Comment
  • Falcone fires back at MCG Capital  [View news story]
    Falcone out tonight adding a nickel to his offer, raising it to $5.30 and giving the option of a convertible preferred instead of common at shareholder's choice. I am certain the PFLT job applicants will continue to say $4.75 is better.

    http://yhoo.it/1GlkgUR
    Jun 3, 2015. 06:54 PM | Likes Like |Link to Comment
  • 8% Yield With Interest Rate Protection From PennantPark Floating Rate Capital  [View article]
    Falcone adds a nickel to offer, plus an option to get a convert. Total offer price is now $5.30. I'm certain the PFLT job applicants will continue to say PFLT's $4.75 is higher and better.

    http://yhoo.it/1GlkgUR
    Jun 3, 2015. 06:51 PM | Likes Like |Link to Comment
  • Falcone fires back at MCG Capital  [View news story]
    So because a certain asset has zero value to buyer #1 but has significant value for buyer #2, the seller should should have buyer #1's zero valuation imposed upon him and give buyer #1 that asset for free?

    Regarding ethics, the MCGC people who will work for PFLT and who will be joining its board and collecting director's fees from PFLT have an obvious conflict in attempting to negotiate a higher price from PFLT.
    Jun 3, 2015. 05:21 PM | Likes Like |Link to Comment
  • Accretive Capital Partners Believes HC2 Holdings' Offer For MCG Capital May Be Superior Than PennantPark's  [View article]

    Again, the real question, (not the diversions) is why PFLT should be negotiating with its future employees to buy MCGC at $4.75. MCGC management's duty is to realize value for MCGC shareholders, not PFLT's.

    This is an accretive deal for PFLT at prices well over $5. There's just nobody on MCGC's side of the table negotiating on behalf of MCGC shareholders rather than looking out for PFLT director's fees and salaries
    Jun 3, 2015. 07:52 AM | 1 Like Like |Link to Comment
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