Am a holder , yes management got sucked in to locking in high...

First 115 Last

Share
Profile

Follow
sainter58

1,166 Posts.

55

25/08/24

12:00

Post #: 75361572
Share

Originally posted by UberTrader: ↑

You're only absorbing what they want you to believe, leading to misinformation. The real issue isn't whether 10.5% is better than their existing debt facility. The announcement's absurd justification, citing the "American election" as a reason to rush the deal, is just one example.

When someone talks about uncertainty but conveniently ignores the possibility of interest rates going down, it’s a classic manipulation tactic aimed at naive investors who fall for this nonsense. Last Friday, Powell mentioned that the interest rate strategy now requires adjustment, with the probability of an interest rate cut in the U.S. now well above 90%, up from 70% when the foolish 10.5% rate was locked in.

If the company had waited and sought debt after interest rates began to decline, lenders would likely have agreed to a rate closer to 7%, not 10.5%. So, the focus should be on how much extra they ended up paying by rushing to secure funds upfront. Especially since they didn’t even need that much money—they borrowed more than necessary and did so more than a year in advance, at a time when interest rates were likely to drop.

This isn't just poor decision-making; it's a move that justifies the removal of the board for acting so irresponsibly.

Expand

Am a holder , yes management got sucked in to locking in high int rates , not good , clearly int is guna come down a lot more than wat they are saying , our only chance oil doesn’t crash production stays up , forecast looks good here , pe of 1 or 2 so fingers crossed , just had another read if they have locked in 10.5% for 5 years , that is plain stupid

KAR Price at posting: $1.70 Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

MIN

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

There are more pages in this discussion • 20 more messages in this thread...

First 115 Last

Add KAR (ASX) to my watchlist

(20min delay)
Last $1.40		Change 0.000(0.00%)		Mkt cap ! $1.091B

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

Buyers (Bids)

No.	Vol.	Price($)
2	2745	$1.48

Sellers (Offers)

Price($)	Vol.	No.
$1.33	15754	1

View Market Depth

No.	Vol.	Price($)
1	10000	1.385
3	10605	1.380
2	8993	1.375
6	37276	1.370
1	20000	1.365

Price($)	Vol.	No.
1.400	16739	2
1.410	44071	2
1.415	13500	1
1.420	6500	1
1.425	8000	1

Last trade - 09.45am 04/11/2024 (20 minute delay)

KAR (ASX) Chart

Day chart unavailable

Am a holder , yes management got sucked in to locking in high...

Top Stories

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

Buyers (Bids)

Sellers (Offers)