Questions I have thought of:
1) How much total debt does NMKT have at this point?
How much is due within the next 12 months?
How much within the next 3 years?
Any due any longer out?
2) How much cash on hand, if any?
3) What are the conditions of the debt? How much is able to be converted into shares, how many shares at what price or is this up in the air until date of conversion?
4) Phil used to say (a year or two ago) he was buying distressed companies at low prices, bringing them up to better valuations, and setting these deals up so that the better valuations of the companies would increase the share price of the parent company to a higher level than when the deal was originally transacted. In this, there was a bargain valued in because, as he often bragged, the number of shares required to pay off the remainder of the deal in a year or two would be much less (fewer shares) than if he were to pay at the time the original deal was constructed. Of concern is, rather than the value of our shares increasing over the last year, they have markedly decreased. This being the case, will the reverse begin to happen as these deals have to be paid out, and thus are we going to have to pay some exhorbitant number of shares due to our lower share price rather than having the bargains we were banking on? I am starting to get quite concerned about this one and this might be who the naked shorters are working for rather than the infamous Augustine fund.
