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It is hard to tell from the press release of $85M in new senior notes how much dilution of common shares this is. The press release does not mention what the conversion price is. I'll check for an SEC filing.
But assuming a conversion of around $15, this would be about a 20% dilution of existing shares. If the company uses the money to buy back longer dated senior notes as they say they will, there would be no dilution. It looks like the market (as usual) is overreacting. I bought some more JAKK shares at $13 and will buy more at $12. My old fair value was $26/share. Even reducing that to $22/share to account for possible dilution, still a nice price to buy at. Sentiment : Strong Buy Rating :
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| Subject | Author | Rating | Time of Post (ET) | ||
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How much dilution due to new senior notes?
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buffetteer1... | Not rated | 4-Nov-09 03:37 pm | ||
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I talked with IR today, and they ARE planning on p...
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seegers101 | Rate it | 4-Nov-09 03:59 pm | ||
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What events would make the notes convertible?...
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lesspheus | Rate it | 4-Nov-09 04:26 pm | ||
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There is no recent SEC filing as of this morn...
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buffetteer1... | Rate it | 5-Nov-09 09:20 am | ||
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They'll buy back the longer notes, have ...
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kilroydq@pr...
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Rate it | 5-Nov-09 09:43 am |
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