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Kay H.
Joined: 08 Nov 2007
Posts: 2155
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 Posted: Wed Dec 12, 2007 7:39 pm Post subject: Whats not to love? |
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Im looking at Charter Communications CHTR . On the surface theyre a nasty ugly mess. Top heavy in high interest debt, nasty 4th quarter, lost nearly 15% of their value in the last 30 days admittedly it traded near 52 week high and everyone got killed last week .
In February as the stock price goed south, CHTR declared plans to refinance $6.58 billion in senior secured credit buildings by establishing $8.05 billion worth of senior secured credit buildings enough liquidity to fund functionings through 2008 .
CHTR closed at $2.98 / share on Friday. Im thinking I like them only from my notional resources at $2.50 to $2.75 over six to 12 months established mainly on the benefits of the refi.
So my questions are these. What have I missed? Whats not to love? Do you think the refinance part was already factored in to the price in spite of the precipitous sell off last month? |
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Tom Grant
Joined: 08 Nov 2007
Posts: 2121
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| Posted: Wed Dec 12, 2007 7:39 pm Post subject: Whats not to love? |
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| Whats not to love? How about $20 billion in debt for a company that showed zero capability to make money? If you want to speculate, I tell you to speculate in hard businesses so you wont wake up to hear theyve declared bankruptcy, which I see as a logical step for Charter. |
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