LinkedIn's Convertible Bond Plays By The Rules
02/09/16 from Bill Feingold - Bill Feingold - Forbes
Back in the dot-com era, the Wall Street Journal columnist Holman Jenkins wrote that what makes convertibles so fascinating is the way they straddle the gap between the “risk-reward” pricing model used for bonds and the “what-the-heck” p...
Twitter Convertibles: Safer And Smarter?
02/02/16 from Bill Feingold - Bill Feingold - Forbes
Few social-media companies—or any companies, for that matter—have been more maddening to investors than Twitter. You can hardly turn on a broadcast or pick up a newspaper (how old-school) without reading about a celebrity’s controversial...
Yelp Should Have Issued A Convertible Last Year. Told You So.
07/28/15 from Bill Feingold - Bill Feingold - Forbes
Sixteen months ago in this space I suggested that Yelp should take advantage of its high-flying stock price to issue a convertible bond. It didn’t. The stock was around $83 then. It headed south. As I write this, after the company’s abys...
Today's Shake Shack Move Should Put A Convertible Bond On The Menu
07/07/15 from Bill Feingold - Bill Feingold - Forbes
It’s a little perplexing why a Morgan Stanley analyst waited until today to downgrade Shake Shack to the equivalent of a “sell” rating based on the stock’s egregious valuation. After all—and yes, this is sort of a community victory lap—w...
Riding In An Uber Convertible
06/30/15 from Bill Feingold - Bill Feingold - Forbes
Once again, Uber is raising money with a convertible bond. Earlier in the year, the company raised about $1.6 billion through a “pre-IPO” convertible deal. One feature of the convertible-bond market is the prevalence of “repeat offenders...
Drive Up To Shake Shack In A Convertible?
05/29/15 from Bill Feingold - Bill Feingold - Forbes
What’s the significance of May 29th? For fans of Shake Shack, it means only two months remain until the post-IPO lockup period ends and insiders are free to sell shares. If you don’t think those shares will hit the market like a ton of b...
How Bill Ackman Might Make Even More Using Herbalife's Convertibles
01/06/15 from Bill Feingold - Bill Feingold - Forbes
He surely won’t do it, because it would go against his argument that Herbalife is a fraud that deserves to be put out of business. But there’s a trade out there that would let Bill Ackman keep making money on his winning short while, par...
Twitter's Convertible Bonds: More Rating Agency Irrelevance
11/14/14 from Bill Feingold - Bill Feingold - Forbes
For some reason Standard & Poor’s unsolicited (Twitter didn’t pay for it) “junk” BB- rating of Twitter’s recent convertible bond offering has been portrayed as negative news—or as newsworthy. It’s neither. Twitter has two features that d...
LinkedIn Connects With A Big New Convertible Bond. Is Netflix Tuned In?
11/05/14 from Bill Feingold - Bill Feingold - Forbes
Mark Twain supposedly once said that history may not repeat itself, but it rhymes. We like rhymes because they satisfy our need for resolution and closure. And in an interesting way, the convertible bond market is getting closure today. ...
The Lesson Of GTAT: Raise Money When You Can
10/07/14 from Bill Feingold - Bill Feingold - Forbes
You know the stuff of Greek tragedy. It features a hero who means well (isn’t it tiresome to hear people tell you that they mean well), achieves apparent greatness, then crashes and burns because of some mix of pride (hubris) and misjudg...
A Pair Of Convertible Bonds Worth More Than 140 Characters
09/11/14 from Bill Feingold - Bill Feingold - Forbes
Today is, above all, a day of remembrance. But it’s also a watershed event for Twitter and the convertible-bond market. If you’ve been following this space, you know that I’ve been advising issuers to take advantage of a generational opp...
What Is Herbalife's Convertible Bond Price Saying?
08/08/14 from Bill Feingold - Bill Feingold - Forbes
My firm publishes a newsletter called Hybrid Vigor about the convertible bond market, named after the concept of hybrid vigor—the breeding of different gene pools to get offspring with the best attributes of both. The offspring, the theo...
Shrinkage in Prologis Convertible Bonds: It's All About Price
07/22/14 from Bill Feingold - Bill Feingold - Forbes
Just over three months ago I wrote a piece here suggesting that instead of putting their cash in the convertible bonds of storage giant Prologis, investors would be better off storing it under their mattresses. Since then, the bonds have...
This Convertible Bond Is Going To Break Really Bad
07/10/14 from Bill Feingold - Bill Feingold - Forbes
RPM International makes specialty chemicals, coatings and sealants. The kind of stuff you might find in your favorite hardware store. The kind of stuff Walter White might have mixed to blow apart a lock or an enemy’s face. Even the world...
A New Sandisk Flash Convertible To Finance Fusion?
06/16/14 from Bill Feingold - Bill Feingold - Forbes
Don’t be surprised to see a new billion-plus dollar convertible bond from Sandisk in the very near future. The flash memory leader announced its acquisition of Fusion IO for about $1.1 billion this morning. On the related conference call...
Insulet Pumps Out Another Winning Convertible Deal
06/05/14 from Bill Feingold - Bill Feingold - Forbes
Investment bankers typically face a lot of obstacles getting companies to issue convertible bonds. They get a lot of strange looks from financial officers and directors. What are these things, anyway? Are they stocks or bonds? Is it a fl...
Tesla Convertible: Saving $250 Million Here And There Adds Up
05/08/14 from Bill Feingold - Bill Feingold - Forbes
Followers of this space know I’ve been urging companies with (once upon a time) high-flying stocks to monetize the hype by issuing convertible bonds. I’ve focused on the astonishing lack of action in the face of opportunity. And n...
Convertible Shoulda Woulda Coulda: The Yelp You Hear May Be Their Own
05/07/14 from Bill Feingold - Bill Feingold - Forbes
You don’t often make friends for I-told-you-so’s, especially in the markets where it’s easy to be wrong for a million reasons. So I try to refrain. But this one has just been, well, Yelping at me for a while. When I wrote about six weeks...
Maybe This Is Why Broadsoft Didn't Issue A New Convertible
05/06/14 from Bill Feingold - Bill Feingold - Forbes
Last month I suggested—as strongly as I could—that Broadsoft should issue a new convertible bond given the valuation of its existing one. I explained that over the life of the existing bond, while the underlying stock had fallen (as of A...
The New Citrix Convertible: Saving Millions In The Cloud From Both Sides Now
04/25/14 from Bill Feingold - Bill Feingold - Forbes
Citrix Systems, which did cloud computing before there was cloud computing, just issued a big convertible bond. The company got a great deal. If you’re surprised by that, you haven’t been paying attention. But it’s worth taking a minute ...
Amazon Better Get Back To The Future With A New Convertible: A Tribute To Joy Covey
04/25/14 from Bill Feingold - Bill Feingold - Forbes
Has Wall Street finally called bull-you—know-what on Amazon.com? Few things in finance feel worse than getting run over by a momentum train. The price makes no sense to you, but you’re overwhelmed by so-called momentum investors engaged ...
Why Not Just Buy The Stock? Ask Genco Convertible Holders
04/23/14 from Bill Feingold - Bill Feingold - Forbes
The convertible bond market has a lot of songs to sing, and if you know the tunes, you might join in. One of them—actually sung by people who don’t like won’t touch convertibles at any price—goes something like this: “Why would I buy the...
Storing Your Cash In This Type Of Convertible? The Mattress Might Be Better
04/17/14 from Bill Feingold - Bill Feingold - Forbes
I like to call convertible bonds issued by companies with so-called investment-grade credits “converts for people who hate converts.” A kinder, gentler way to describe them might be “bonds convertible into stocks that already have conver...
Looking For Yield? Here's A Convertible Prospect
04/10/14 from Bill Feingold - Bill Feingold - Forbes
If you’ve been following my posts, you know that the convertible market offers a once-in-a-generation opportunity to raise capital on the extraordinarily attractive terms. I can understand why companies that used to rely on convertibles ...
The Broadsoft Convertible Today: Let The Buyer Beware, Let The Issuer Be Bold
04/01/14 from Bill Feingold - Bill Feingold - Forbes
In my last piece I discussed the scarcity of investment-grade convertible bonds and those bonds’ tendency to trade at unattractive prices. I cited the bonds of Lam Research—if the stock gains 25% over the next two years, convertib...