Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.Most stock quote data provided by BATS. XELA may not go to zero, but if negotiations with some of its lenders lead to a recapitalization, dilution from a debt-for-equity swap could send shares to significantly lower prices. At the same time, Exela’s balance sheet is saddled with around $1.1 billion in debt. Even with reported operational improvements, there’s a good chance this debt vastly exceeds the underlying value of the business. Inflation has squeezed margins, and the company is scrambling to cut costs in order to get out of the red. The underlying fundamentals of XELA stock have not changed. That said, the spirit of my argument still stands. ![]() Following a 1-for-200 reverse stock split completed on May 12, the outsourcing firm’s shares no longer trade for literal pennies. As I put it back in March, “even under a nickel, Exela Technologies (NASDAQ: XELA) isn’t worth a penny.” Admittedly, this quip is somewhat out of date.
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