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elray
join:2000-12-16
Santa Monica, CA

elray to Skippy25

Member

to Skippy25

Re: Can't Be!

Grande is privately held, so they're free from the much-maligned pressure to make the quarterly report, but it also means we have even less insight into their financial health.

They could very well be in trouble.
Moody's isn't very keen on their debt.

Not that it bothers me one bit - so long as they're using their own (investor) money, they're welcome to take their chances and roll out fiber at $65/month.
Skippy25
join:2000-09-13
Hazelwood, MO

Skippy25

Member

So what you are saying is that it is the stock holders of our major ISP's that are holding up investment into the future of their companies......

Who would of thunk it?
elray
join:2000-12-16
Santa Monica, CA

1 edit

elray

Member

Nope. Shareholders are the greatest source of that investment capital. They don't hold it up, they enable it. The quarterly filing simply means that the company is more closely scrutinized.

Privately held firms are simply able to take greater risks, including those which imperil the future, the very existence of the company. I don't know, in the case of Grande - this appears to be a small cherry-picked market segment, so they might be able to absorb a loss, but again, Moody's doesn't seem to approve.

Again, it doesn't bother me either way. If they go belly-up, the fire-sale will generally result in cheap assets for whoever takes over, which artificially lowers the cost to the consumer, at nominal cost to the treasury and the bondholders who believed in them.

If they profit, selling $65 FTTH against Google and AT&T, that's fantastic, more power to them.
Skippy25
join:2000-09-13
Hazelwood, MO

Skippy25

Member

You are delusional. Shareholders, the very first people to buy a companies offering, "may" contribute to capital investment. Beyond that, the money goes between one investor to another and the company sees none of it. The only ones that see money are the investment firms and the seller. If a company offers 1 billion stocks for $1, they will get $1Billion dollars from the buyers. That stock can then go up to $1000 a piece in 6 months and that company will see $0.