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2017-03-20

  • batbeer2 commented on Holly LaFon's article 03-20 01:03
    Bill Ackman Has Had Enough Precipitous Declines for One Stock, Sells Valeant
    After preparing everyone for a different sell by filing a prospectus to unload Chipotle (CMG) last week, Bill Ackman (Trades, Portfolio) exited his...
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    batbeer2 03-20 02:03
    • >> Selling off assets to pay down debt has obvious limits.

      Actually, no. At the extremes it can be a fantastic way to make a healthy profit.

      You issue some bonds at say... 6% to buy something.

      Due to some fear your bonds trade down to say.... 12% yield.

      Then you sell the asset to buy back your bonds at a discount to nominal value and....

      Presto! free money.

      I have seen it happen and it is a distinct possibility at Valeant. 

2012-04-22

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