Comments on: Transaction ID: 896***AE7 — Pay $1 and Legally “Secure” 110% Gains?

By: Anonymous

Anonymous — Sun, 06 Sep 2009 22:21:09 +0000

Freescale has several debt payments coming due in 2013 and 2014, which they have to either pay up on or (more likely) re-finance to a later maturity before they can pay the bonds coming due in 2016.

If they default on any of those earlier bonds (which is not impossible, since it is not likely that they would have accumulated enough cash by then), everybody who owns their debt will take a huge haircut (perhaps even 100%), as this debt is mostly unsecured. The secured debt on their balance sheet is not traded publicly and is mostly traded only between institutions.

Study their balance sheet and income statement carefully, and look to make sure that their EBITDA (a measure of cash flow) is sufficient to cover their total interest payments by at least 2-to-1 or higher. No bank will re-finance their debt coming due in 2013/2014 unless that is true. And if they can’t cut it by then, Ch. 11 is more likely than you getting your money back. There’s a reason why Blackstone has written down their equity by 85%. In reality, they should have written it down by 100%. In all likelihood, their equity is worth zilch today, as the total outstanding debt exceeds any fair measurement of what their equity is worth.

By: hugh jass

hugh jass — Fri, 04 Sep 2009 02:19:48 +0000

Great work again Gumshoe. very much appreciated.

I just got the email and was curious as to the secret. Would never pay for it, as it screams bs.

By: Maryanne Huang

Maryanne Huang — Thu, 03 Sep 2009 18:43:54 +0000

Much appreciated Stockgumshoe! saved us a lot of time, grief and money (now that Stansberry is charging 10% cancellation fees) Their products that works for me are 12% and Put Strategy.

By: Kimble Jury

Kimble Jury — Thu, 03 Sep 2009 17:47:25 +0000

I found this site by Googling Transaction ID companies. Just wanted to thank you for your straight talk re Mike Williams. The thing I have found about any of these “exclusive” newsletters such as Stansberry, Oxford Club, True Wealth etc is that they all seem to be related and by subscibing to them all you get is invitations to subscribe to other more expensive packages. Any tips they give you are usually out of date.

By: Dan Russell

Dan Russell — Thu, 03 Sep 2009 04:37:46 +0000

I got interested in this whole FINRA thing about a year ago; there are a lot of very substantial companies (Coca Cola)on that FINRA list, offering upwards of 100%; why are Coca Cola and some very large others willing to pay 100% for 6 months to a year?