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Scorpo900

01/11/12 8:03 PM

#5469 RE: valleyview #5443

this is old news, anyways, ok how to view this. On a sunny day where all flowers blossom pink: it means that their interest in the company is such that they are giving away their class A (interest generating stocks, loans, contracts, etc) in exchange of long term gains through company growth. On a dark gloomy day where you step in dog poopoo on you way to work to have your boss fire you: they know that the company will not be capable of supporting their debt on interest owed, so they get the leverage through common stocks, provably underpriced, that they are selling in short bursts to recoup their loans. I think is a combination of both, they know that the interest owed is a burden on the company books, so they did the change to common stock, which may have tax advantages to them (investors) too, so they can recoup their loans sooner while allowing the company to write off that long term debt with interest payments. All this are assumptions.