Read this later - I don't want to spoil this happening right now -it's too exhilararing!
Not to pull a BlueDiamond BUT since people are bring up the bond thing this IMO was great post -
Originally Posted by Korey
Honestly guys, the questions you all should be asking are not "How high will the price per share go tomorrow?" and “I wonder if they’ll give us a slice of that 2.6 billion?” but "Can CSHD stand on its own two legs?"
I am not going to make this a classroom lesson, as that is not what you all need right now. I will not highlight parts of the 8-K and say “This is what this means,” because, honestly, I doubt half of you would read it or even care. I'll probably go to sleep too, right after this instead of sticking around. But I do want to clear up a couple misconceptions that I’m afraid I see cropping up between the lines.
First: CSHD does not, does not, have 2.6, 1.6, or even 1 Billion dollars in assets (and I capitalize the “B” because that is a ton of money, enough to where if Google tomorrow found 2.6 billion dollars in in the closet people would go whoa).
CSHD has what we like to call debt. This is what they have; this is what the 8-K is telling us. Only the 8-K is telling us this because, frankly and unfortunately, they know that people like half of those in this thread will not read the 8-K. They will read 2.6 Billion in assets. And cowbells. And moons. And in their misinterpretation they will buy, the pps will rise, liquidity will be gained, and certain people will make money. This is why the 8-K was released.
CSHD has “purchased” a line of credit in essence. Yes, a bond is very secure, yes a bond backed by a Moody’s rating in the A’s is even better. In addition to understanding what a bond is, you should also know what side of the bond a person is on. And somehow I get the feeling people are thinking ole Rufus (who won the totally unrelated “Look I can make campaign contributions to buy this Good Republican Award) is sitting on the other side of the bond.
Yes, that’s right, CSHD is the one paying, not receiving. They have a license to do their business, make money in the way capitalism intends us all to, and borrow off of that beautiful, beautiful line of credit if necessary.
Second: CSHD does not have the ability to take these 2.6 Billion in “assets” and buy whatever they want with them. They can’t just up and buy a few dozen companies because, well, shit, they have the money. They don’t.
Where in this 8-K did you all find that CSHD has 2.6 Billion to do with whatever they feel like? Does it say anywhere that the entirety of these loans is given freely to Conversions to go buy Great Pandas in China should they feel like it? No. And let’s keep in mind also that CSHD both neither the trustee of this trust account nor has any sort of fiduciary control over it or its management of the money.
So if the first part has sunk in yet, and we now realize that “Damn, CSHD does not have 2.6 Billion in moolah laying around,” let’s let this second part sink in. Not only do they not have 2.6 Billion in moolah, they have limited access to the use of that 2.6 Billion even in loaned form. Once again, CSHD= No 2.6 Billion in moolah.
Let us also keep in mind that they already announced a bond earlier, much in the same way this was announced (albeit a bit less large). What happened after that? No, unfortunately no new pps levels were set. People realized what the two points are saying. Bond news does not equal instant sums of money for the company to but MiG jets for all its employees. The company still has to work hard, no free ride, it just gets a lift/push.
Ok. Sunk in? Here's what you all have to decide: does CSHD have legs? Read the financials, I know I did. They are making money, not much compared with 2.6 Bil, but money. Keep in mind that webvan was a company that had active, trading stock after they had no more vans. That is penny stocks for you. Make sure you at least know what CSHD does. Look at past activity from them, vision for the future, etc. I'm not tryin to push you to all be fundies (I'm a techie myself ) but at least know what your company does. So, big question: Do you, you personally, no one else but you, believe that CSHD has legs and teeth to make a strong company, take advantage of these bonds, and make you some moolah? Discuss this, but do not let anyone but yourself make this decision for you.
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