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williamcarswell

williamcarswell
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  • The Burger King And Tim Hortons Marriage Voting Guide [View article]
    Thoughts on the exchangeable units?
    Dec 10, 2014. 09:35 AM | Likes Like |Link to Comment
  • A Common Sense Look At Barrett Business Services [View article]
    How is it not a fraud to not disclose the default in the October 28th release?
    Nov 17, 2014. 10:02 PM | Likes Like |Link to Comment
  • Barrett Business Services (BBSI): Throwing Good Money At Bad [View instapost]
    The 10-q released tonight says they've defaulted on their credit agreement with Wells Fargo. Curiously, they didn't mention this in their Oct 28th earnings release. I think these guys are crooks
    Nov 17, 2014. 06:44 PM | Likes Like |Link to Comment
  • A Common Sense Look At Barrett Business Services [View article]
    Shoes keep dropping. What I expected:

    "The Agreement also contains customary events of default. If an event of default under the Agreement occurs and is continuing, the Bank may declare any outstanding obligations under the Agreement to be immediately due and payable. As a result of the increase in the Company’s workers’ compensation liabilities as of September 30, 2014, to a total of approximately $208.3 million, and the related workers’ compensation claims expense accrual of $101.2 million for the quarter ended September 30, 2014, the Company was in violation of the above financial covenants at September 30, 2014, other than the prohibition on incurring additional indebtedness. On November 10, 2014, the Company reached agreement with the Bank pursuant to which the Bank has agreed to waive the covenant violations in exchange for payment of a waiver fee of $20,000 and a requirement that the Company present a plan acceptable to the Bank by December 31, 2014, addressing the Company’s workers’ compensation reserve funding requirements. Until the reserve funding plan has been accepted by the Bank, the Company may not make any repurchases of its outstanding common stock or draw on the revolving credit facility to fund its insurance reserves."
    Nov 17, 2014. 05:38 PM | Likes Like |Link to Comment
  • A Common Sense Look At Barrett Business Services [View article]
    If the following exchange from the last conference call doesn't scare hell out of BBSI longs, it should. Basically, BBSI's CEO admits to overpaying its dividend and buy backs by about four-fold with money that should have gone into reserves. Yet now BBSI raised the dividend while seeking additional borrowings from its lenders. Feel secure?

    "Dan Mendoza-Prospect
    You guys have been good returning capital to shareholders, but ultimately if you look at that kind of $109 million, you could argue that $80 million of that that you used to return to shareholders should have been, in hindsight should have gone into reserves.

    Michael Elich - Chief Executive Officer
    Yes, yes and that’s why its been very important for me over the last couple of years to get this right. So on a go forward basis we can have confidence that all the pieces in the model, if the model had to grow up, are working as they should be and that the future itself doesn’t pin us back into another corner."
    Nov 15, 2014. 12:57 PM | Likes Like |Link to Comment
  • A Common Sense Look At Barrett Business Services [View article]
    I would like someone to ask the very basic question of how big is the liquidity hole.

    Management claimed in the last earnings release that they were going to banks for additional borrowings to satisfy BBSI's "liquidity needs." If so, they must have a number in mind.

    It amazes me that bullish analysts, pumpers and trapped longs cannot grasp how important it is to know that number.
    Nov 15, 2014. 12:45 PM | Likes Like |Link to Comment
  • Hertz announced new strategies [View news story]
    Yet, if you read the 8-k, the total errors to 2013 amount to 5% of GAAP income. Not exactly earth shattering.
    Nov 14, 2014. 01:10 PM | 1 Like Like |Link to Comment
  • A Common Sense Look At Barrett Business Services [View article]
    BBSI is now delaying its 10-q filing per SEC filing last night.

    Anyone know how big the liquidity hole is that they said they were "negotiating" (i.e. begging) the banks over?

    Lots of cockroaches here.
    Nov 13, 2014. 09:25 AM | Likes Like |Link to Comment
  • Barrett Business Services (BBSI): Throwing Good Money At Bad [View instapost]
    Basically, they had to bring ACE in to avoid getting kicked out of California. I'm sure ACE is doing it for free and it won't affect BBSI's margins at all.
    Nov 12, 2014. 12:23 PM | Likes Like |Link to Comment
  • Barrett Business Services (BBSI): Throwing Good Money At Bad [View instapost]
    You didn't respond to the question I asked. Do you understand the question? Your answer suggests you don't.
    Nov 12, 2014. 11:41 AM | Likes Like |Link to Comment
  • Barrett Business Services (BBSI): Throwing Good Money At Bad [View instapost]
    Does anyone here disagree with Copperfield's estimate of BBSI's liquidity?

    I would appreciate thoughtful responses from anyone who does disagree.
    Nov 12, 2014. 09:01 AM | Likes Like |Link to Comment
  • Actavis to buy Durata [View news story]
    There is no advantage. They get a shakedown fee,you get zip.
    Oct 19, 2014. 07:06 PM | Likes Like |Link to Comment
  • A Closer Look At Franco Nevada's Candelaria Stream [View article]
    If you can find a historical chart of the old Franco Nevada (before it was taken over by Newmont) you can get a good picture of just how clever an operator Pierre Lassonde is. He created massive wealth for his shareholders and I was pleased to invest in FNV when it was spun out from NEM last decade. I haven't sold a single share and have been pleased to watch the dividends grow.

    Interestingly, the old FNV traded at quite a premium to the miner group as well, and this was during a public existence of almost two decades. This suggests to me that the market has long been aware of the quality of FNV's model over a straight mining operation.
    Oct 13, 2014. 09:18 PM | Likes Like |Link to Comment
  • Update: Franco Nevada Enters Into Another Low-Return Deal [View article]
    I'm actually surprised FNV hasn't bought OKSKF?
    Oct 9, 2014. 09:32 AM | 1 Like Like |Link to Comment
  • Update: Franco Nevada Enters Into Another Low-Return Deal [View article]
    It's a mistake to discount exploration potential to zero. I note you just made a post regarding LSG's exploration success. FNV gets the upside there, too, due to its royalty agreement with LSG.

    If you really want to go back historically, and look at deals like Goldstrike, a large, perhaps primary, part of FNV's success has come from the exploration upside. No guarantee it happens here, but it's definitely contemplated in the agreement and certainly not a zero probability.
    Oct 8, 2014. 11:54 AM | Likes Like |Link to Comment
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