Am I the only one that thinks this is crazy? Verizon wants to borrow money from money it has not even collected yet. That would be like if I took a loan out on a paycheck I have not received yet.
http://www.arkansasonline.com/news/2016/mar/09/verizon-looks-at-backing-bonds-with-bil/?f=business
56.5 cents per all 4 billionish outstanding shares.
and Verizon will have debt every quarter for many many many years to come
$2.5 billion per quarter to shareholders. Ouch!
what about lowells box truck that drives around basking ridge getting 5G signals beamed to it.
Weeeee Weeee look at meeee.
lowells magic 8 ball told him that 5G will save us all in 2020.
weee weee look at meeee.
the bobble heads franny, marky, and johnny all go...
weee weee look at meeee.
I'm a big shot verizon executive that treats my workers like garbage.
weeee weeee look at me.
Workers, analysts, shareholders, customers, competitors, regulatory bodies all are against us..
weee weeee look at me.
Oh yeah and Verizon's Debt To Capital Ratio is 87.8. That's bad, real bad. You get to a 100 on this number and your in chapter 11.
Wow, someone called me a union troll. I am not making this stuff up, numbers don't lie. Only one company operates with more debt than Verizon, GE. That's right, Verizon has more debt than any other company in the world, except for GE. And GE is aggressively paying down its debt.
And what is Verizon doing? Finding ways to pile on more debt. Borrowing against future device payments and they are supposed to bid a whopping $6.2 BILLION on an upcoming spectrum auction. It wants to buy Yahoo, a worthless company for $8 BILLION.
How is any of this smart? If Verizon's subscriber base deteriorates, or if interest rates go up, or if they reduce their outlandishly expensive rates to try and compete more, or if the stock goes down - all spell disaster.
Common people wake up and smell the coffee, I am not trolling. This is a warning to everyone that works at Verizon. Of course Lowell and Shammo will tell investors everything is great, all lies to make sure the precious stock does not drop.
It does not take a rocket scientist to see Verizon is in deep $hit. This is like Enron 2.0.
It is not hard to do a little research and find articles like this on the web:
http://americasmarkets.usatoday.com/2015/06/04/12-companies-heap-on-the-most-debt/
I am going to be bold and say in a few years or less, Verizon is going to have to face this issue. How? With more layoffs, with more cost cutting, with more restructuring.
Give me one, just one scenario where Verizon will beat this and come out ahead? How is it possible? Massive subscriber growth and massive increase in rates without loosing subscribers. Is that realistic? No it is not...
meh..... individuals and businesses do this frequently to invest, expecting an almost known good return immediately.
....or lowell could be looting the company like a kid in the candy store
The union trolls strike again.
VZ IS NOT GOING BK.
If they are in trouble, they need to cut union salaries by 50%
Yeah, if others do it, that means it's okay, then Verizon should too. After all Verizon has no ideas of its own. Except GO90 - the best idea ever! I suppose having a 110 billion in debt is smart too.
Other carriers already do this. Nothing new here. Get the money today, and invest it with a greater return than you are paying in interest. Smart move, and not unusual.
How can a company that pulls in so much money be so broke. Shamu and Lowmac are idiots..
It's like Verizon's version of a CDO. Way to go Shamwow, your a genius pulling the Jedi mind trick on those pesky inventors!
Oh I hope vz goes bankrupt. i recite affirmations over and over. Just hope somebody is listening.
Nobody with a brain left...director and above
It is a Bain Capital move. Read the Rolling Stone article about Mitt Romney. People refer to it as a bust out.
It is a Bain Capital move. Read the Mitt Romney article in the Rolling Stone. It is called a bust out.
It's called a payday loan
Reminds me of the mortgage industry in 2007 before the big collapse. What else would you expect from a desperate company $110 BILLION dollars in debt?