OK, We have just done a share split, a purely administrative exercise. It was questioned previously why the Available Shares had increased to the degree it did. Previously they were at a point where they were unable to issue many more shares. Now they can issue almost double the current shares.
So we have some debt. Could not care less. Who cares about 2024. Silver is looking better than it ever has, and investment in silver is surely going to outperform any interest on any debt. (providing you don't have a citibank visa card).
CXC is in an absolutely fantastic position. If market pans out like I expect we will find this thread very busy with positive thread titles. An analyst recently called this a ten bagger (not because of the split), now that is a big statement (I hope he is right).
I am overweight in this stock, because this is the best silver play on the ASX. It is leveraged with Silver Price, and it will react strongly to the silver price . The new mine is coming into production, its going back to CXC ASX code, silver still trending up, and it remains both a commodity and a currency, means I expect this to outperform by a substantial multiplier.
So we have some debt. Let it be... Whoopdidoo!! That currency is being printed in large quantities, its being flushed. Our currency, silver, - just have a look at last six months, and the trend.
So let summarise this rush to convert all this deflating debt into CXC shares? The board has little say over this, as the right to exercise this conversion lies with the Convertible Senior Notes. All these Banker/Institutions/Prof Investors are exercising their rights to convert their secured debt at 1.5%, 3%, 4.5% or similar into a similar amount of shares. They have until 2024 to do so, why the rush?
This is bad for CXC shares, because we have just parted with a chunk of the company with SILVER assets, in lieu of $$$ which dropped another % last night.
This share split may have been forced upon CXC, as they were not able due to their constitution to issue sufficient shares to convert these notes. This was rectified in the split.
We have not even gone back to CXC as yet, and these announcement are coming in thick and fast. Why the rush? They have secured loans; if anything goes wrong, then we lose and they win! They are first in the picking order, above us the shareholders.
So we as shareholders are being diluted somewhat. Bummer! Too Bad so Sad!
So why this rush?
Perhaps they believe the dividends will exceed what they will get opposed to interest.
Perhaps they believe the company is stable now, in order to relinquish their secured position.
Perhaps they believe the share price increase is likely to be far greater then what the interest will give them.
I sit back in anticipation...
(I do not understand why the shares arer issues at $13.93. Can I have some too? I have cash!)
Add to My Watchlist
What is My Watchlist?