Xro - xero

[Stranger_Danger]

Then again, if they choose not to, then either offer more shares to the public to fund their cash needs - or, dare I say it, go to a bank. Looking at their latest balance sheet though and with interest rates tipped to rise ... which bank would take the gamble - on the balance sheet alone (ie - without PG's etc from the above)?

They would never borrow from a bank - why do that when selling shares is so cheap and they are so in demand?

Besides, could they borrow from a bank?

This is a 2 billion dollar company, yet my ASB Securities account says the margin lending ratio is 0%.

It says the margin lending ratio on CNU - the company John Key said could go broke - is 65%.

In terms of a comment on risk, that is....interesting.

[Dentie]

They would never borrow from a bank - why do that when selling shares is so cheap and they are so in demand?

Besides, could they borrow from a bank?

This is a 2 billion dollar company, yet my ASB Securities account says the margin lending ratio is 0%.

It says the margin lending ratio on CNU - the company John Key said could go broke - is 65%.

In terms of a comment on risk, that is....interesting.

Assuming you had $4 billion to spend on acquisitions .... would you purchase XRO outright for $2 billion?

If so, what would you expect to get for your $2b?

[bobxia]

They would never borrow from a bank - why do that when selling shares is so cheap and they are so in demand?

Besides, could they borrow from a bank?

This is a 2 billion dollar company, yet my ASB Securities account says the margin lending ratio is 0%.

It says the margin lending ratio on CNU - the company John Key said could go broke - is 65%.

In terms of a comment on risk, that is....interesting.

i borrowed 50% from For barr, and they charge 6.69% interest, which is not bad.

[David Hardman]

What is going to be really interesting to see is if this is the time Rod Durry takes money off the table.

Money will be raised from overseas investors.

[zs_cecil]

notice there is no public raising going on... you get to buy at the market rate on limited shares traded.... are they to scared to raise from the public?? depress the share price?? should be a share split here?

Share split will be awesome. 1:10 would be good.

[CJ]

I assume since no one has heard anything, any new capital wont be from NZ. If overseas VC's, I'm surprised they didn't have it all lined up like previous capital raisings.

[Dentie]

"Assuming you had $4 billion to spend on acquisitions .... would you purchase XRO outright for $2 billion?

If so, what would you expect to get for your $2b?"

THEY WOULD HAVE TO HAVE SOMETHING VERY SPECIAL!!!!!

Thanks for your answer Surfer...

[apac]

Anyone got a strategy for trading after announcement?

[CJ]

Anyone got a strategy for trading after announcement?

Wow - that is a big investment at a big price (premium to market) and is probably another 3 years cash burn on top of the 1 year they have left.

No sell down by the founders.

Unfortunately no SPP.

If you trust the big money, this would be a buy signal.

Disc: Dont hold - too busy wiping my tears on DIL share certificates.

[Stranger_Danger]

180 here, 180 there....eventually, you're talking about real money!

Ponzi similarities aside, this *is* good news - it appears no existing holders sold out, and this is a substantial amount of cold hard cash that someone has put down.

Cash won't be an excuse in the US now, which is presumably just how they want it.