Convertible Notes, WHY??
$Alibaba(BABA.US$ i dont get it!!! why issue convertible notes when you are cash rich? anyone can enlighten the logic behind this?
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102877280 : this news was what causing it to keep on sliding down...no reason to issue convertible notes if you are cash rich. . .
Buffettwannabe OP 102877280 : Do we know how does the mechanics work? Maybe it makes sense?
102996819 : can someone enlighten me, what are these convertible notes....
102877280 102996819 : selling u a cert till x number of days plus interest when redeemed. like borrowing money from you.
102996819 102877280 : what the heck..
Thelord 102877280 : Looks like they faked their books and they don’t really have the cash
mmmh : relax. baba cash cow is in china commerce, cash in china has many procedures to move outside of china. this loan will allow baba access to cash outside china to buyback shares at a price, I guess they want to demonstrate buyback asap at this level. just hope the interest is reasonable.
Thelord : Gonna dump very hard
102928776 : convertible bonds issuance to raise money for share buy backs is actually good news. And oversubscription means there's confidence in the company for long term . Which company in the world has no debt? none. And paying if dividends shows there's profit. I think before retailers panic, do your due diligence and research about what convertible bonds mean in longer term.