NAB today announced notes with margin of 2.8% on BBSW which is a lower margin then what they had before and I am sure they will fully subscribe which says that thing's are written in plain English on the wall that interest rates are going down .. ! When ? I don't know but that is the trend going to happen.
Company could have gone for this in early next year and it would have easily got it for lower rate or had enough of their own cashflow that they don't need any refinancing and existing debtor would have extended debt even at a better term as no one in the market foolish not to extend debt when they know company making money and had good cash in the bank.
There is no election in Australia so to talk about US election is absolutely rubbish as they can always take the debt from Australia or issue bond to shareholder and there will be plenty running around for even 8% interest rate.
Repeating this is not going to make any difference to arrogant and ignorant board. However, removing them will only help us if we get board member from active investor who will make it happen for us to get some cashflow moving in our pocket instead of all the big end of the town making behind close door deals. !
KAR Price at posting:
$1.90 Sentiment: None Disclosure: Held
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