Re:MoneyGram Signs Deal to Work with Currency Startup Ripple
by SahAssar on Thursday January 11, 2018 @05:14PM
(#16128532)
> Given the amount of dumb money chasing anything that smells like Blockchain, it's not particularly dumb to let shareholders sell their shares at a premium to uninformed buyers.
Are you advocating companies exploiting uninformed investors or just saying that it's the "money-smart dickish move"?
Re:MoneyGram Signs Deal to Work with Currency Startup Ripple
by JumpCrisscross on Thursday January 11, 2018 @05:58PM
(#16128860)
> Are you advocating companies exploiting uninformed investors or just saying that it's the "money-smart dickish move"?
I'm not advocating it. I'm saying there is a logic to it.
Their net income has been positive for each of the last five quarters and their operations and business produced net cash in the first three quarters of 2017 [1].
Their operations throw off substantially more cash than the $30 or so million in interest they pay each year, and their senior notes don't come due until 2020. Moody's and S&P rate them as highly-speculative, non-investment grade companies (B1) [2]. Not great, but not at risk of imminent default either.
It's not a healthy company. But it's not one in the midst of its death throes, either. Given the amount of dumb money chasing anything that smells like Blockchain, it's not particularly dumb to let shareholders sell their shares at a premium to uninformed buyers.
Book equity is a bad sole measure of the health of a business, particularly a financial business.
[1] https://finance.google.com/finance?q=NASDAQ%3AMGI&fstype=ii&...
[2] https://www.sec.gov/Archives/edgar/data/1273931/000127393117...
Disclaimer: This is not investment advice. Do not buy or sell any securities based on this Internet commentary.