One Coronavirus risk I haven’t seen people talk much about is sequencing risk. The assets may be good and cash generative over the long term but it doesn’t matter if the creditors are the new owners and your equity gets wiped out.
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Look what do I know about viruses? 0. But if companies go under OR need to dilute at discounts because of liquidity issues the future cash flow only matters so much. Having hotels on Boardwalk & Park Place is only good if you’re solvent long enough for people to land on them.
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Replying to @LAForeverHall
If the assets are money good banks have in three past extended and pretended. If there was ever a good reason to e&p it's now. No one wants a defaulted asset when a case can be made it's closer to not.
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Replying to @Balsikafi
I probably need to reread The Shipping Man, or maybe just become The Shipping Tran.
8:57 PM - 6 Mar 2020
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