this is very obvious.....
1) it doesn't matter who is the treasury manager of the banco de central venezuala. it could be my sister, or joe six pack,,, it doesn't matter.
2) CSHD never said they actually purchased the bonds, they just stated a transfer of ownership could happen.
On March 15, 2006, the Company acquired full ownership of Global Bonds issued through the Republic of Venezuela with an issuance date of July 31, 1998 and a maturity date of August 15, 2018. The principal amount of the bonds is $500,000,000 USD with a fixed interest rate of 13.625%, computed on a semi-annual basis. The applicable identification codes are as follows: Common Code - 008975540; CUSIP - 922646AT1; & ISIN Code - US922646AT10. The first interest payment is due on August 8, 2006, in which interest receivable and revenue have been properly accrued, to the holders of the bonds (the Company).
The applicable Declaration Statement (ownership documentation) specifies the transfer of full ownership to the Company from Banco Central De Venezuela, the issuer of the bonds, and insures that the bonds are free and clear of any deductions, charges or fees assessed by the Government of Venezuela. The Certificate of Ownership also identifies the Company as the sole owner, with an effective date of ownership as of March 15, 2006. The ownership documentation has been properly recorded with the State of Georgia securing and perfecting the bonds.
now i know that sounds a bit confusing, however it is contradictory. and taken from the publicly available 8k filing which anyone can read FOR FREE.
3. CSHD has just used the principle amount of the bonds to state their value, never have they used the current market price of the bonds. last i saw they traded at 101 5/8 I think... i do not know that for sure.
and all of that withstanding... when the government of venezuala makes an interest payment, they don't just send out a coupon. they send the money. I suppose you could keep your paycheck and never cash it, and call it an asset, but why? why? would you do that? a shareholder would want to book the dough. it doesn't make a check more valuable to just not cash it and think that you can.
these are my thoughts on this issue. it is not bashing, and its not pumping. the underlined part above was simply copied from the publicly available 8k which can be read in its entirety on free edgar.
AI
