Replies to post #844 on NewAge Inc (fka NBEVQ) (NBEVQ)

[takethemoneyrun]

Who cares if it was secured? If they default on the loan then the stock will tank accordingly. Why does that matter so much to you? I can see if it were a situation where they put up stock but having a secured loan on assets is common practice and of no concern to me. The saying paralysis by analysis comes to mind here....

[NewJerichoMan]

Shaving 10ths of a % off...

LOL. Yeah, you can buy quarter, half, and whole points but from 10%+ down to 3.7%? No. The interest rate is one of the biggest, if not the biggest, mechanisms for pricing risk: higher risk, higher interest rate. A 3.7% interest rate does imply low risk, it screams it.

...they put up any collateral.

You've seen our balance sheet, right? LOL. I'm puzzled how BDW sweet talked the bank into allowing this loan, too. Maybe US Bank is the pumper in the stock? ;-)

Say you're right, the bank still has to collect said collateral in case of default. Easier said than done. So it doesn't obviate risk. No bank wants to deal with defaults in any case.

You're mis-identifying the dangers here. The risks are growing too fast, picking the wrong horses, i.e., products to sell, and recession.