INVN's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/150100/comments http://seekingalpha.com/article/63785-china-security-surveillance-whitehorse-deal-a-bullish-sign?source=feed#comment-115594 115594
The 13D filed on January 30 indicates the risk being taken with this loan. In particular, exhibit 2. This shows what may be a troubling issue regarding the loan. The value of Mr. Tu's collateral must be 300% or more of the $50m loan. Thus, given the 8.75m shares he owns at current prices being worth $121, he must post an additional $29m of collateral. While this is based on a ~20 day average price, it suggests that were the stock price to stay below $17.10, he'd have to post more collateral and below $13.42, he wouldn't have enough stock to avoid default on the loan. This is a real stretch, but should the loan be defaulted on, the lender would get all of the stock, and given the collateral would still be worth close to 300% of the loan, the lender would very likely sell the stock immediately and still book a gain regardless of how much damage it caused the stock.]]> Sun, 10 Feb 2008 21:05:33 -0500
The 13D filed on January 30 indicates the risk being taken with this loan. In particular, exhibit 2. This shows what may be a troubling issue regarding the loan. The value of Mr. Tu's collateral must be 300% or more of the $50m loan. Thus, given the 8.75m shares he owns at current prices being worth $121, he must post an additional $29m of collateral. While this is based on a ~20 day average price, it suggests that were the stock price to stay below $17.10, he'd have to post more collateral and below $13.42, he wouldn't have enough stock to avoid default on the loan. This is a real stretch, but should the loan be defaulted on, the lender would get all of the stock, and given the collateral would still be worth close to 300% of the loan, the lender would very likely sell the stock immediately and still book a gain regardless of how much damage it caused the stock.]]> http://seekingalpha.com/article/47200-comtech-comes-through-with-big-contract-wins?source=feed#comment-115593 115593 Sun, 10 Feb 2008 20:59:54 -0500