Originally Posted by
moneytalk
It is the risk that u have to consider. I know it is now a fire sale case.
I did not follow the case closely. Now is whether OLAM will take up the challenge of getting a credit rating from Moody or S&P. The insiders are buying up the shares, but this will not help.
OLAM so far, cannot give a very positive assurance as such, the bond price, especially the prep, have gone down even more yesterday.
Now, reading the outstanding bonds that OLAM has, the only way to pay off the existing bond is thru new bonds, and I think, the new bonds will have to carry a rate of at least 10%, (ie junk bond rate) and this will add on to the financial burden of the company.
I am not a fan of straight bonds at all. If you ask my opinion, I will not buy this bond, I am only taking calculated risk and this one the risk is at the higher side.
If you are serious in it, don't take the prep bond, and look into the collateral first, consider those only with senior secure bonds.
I will drop u a PM later when I look into their financial statement.
BTW, look like the short sellers are not squaring their position. It seems to me that, these are very big short sellers, and have instrumented this for a few months.