Wednesday September 2, begins the daily routine: 8:30 am. Latte at the bar forever. I open the newspaper in the economy section. And just after the first bite of the toast .... Surprise!
"New Rumasa owned Ruiz Mateos family is preparing the second issue of corporate notes to finance the acquisition of new companies, after closing this week with a "resounding success" the issue that launched last February, ".
I suffer then you'll like a Déjà vu and my mind begin to spend a large amount of images "strange": a man out of a cab on the dress Vallecas Superman, another gentleman with the same clothes in front of the judged boxing scenes at the headquarters of the Professional Football League; hint of a fight against a former minister, etc, etc, etc.
Admittedly New Rumasa has taken a liking to be financed through the issuance of promissory notes. The company undertakes a new issue in which minora the interest rate offered from 8% to 6%. This 6% can be improved by half a point for each additional year that is given to pay up to a maximum of five years (to reach 8%).
The truth is that the holding of Ruiz Mateos family is one of the English business groups (and families) more dynamic, with a net asset value of more than 3,000 million euros in stable industries leading companies and consolidated in the economy . Their motto is equal to that expropriated Rumasa that February 23, 1983: "Committed to employment . Their data support its challenge: More than 10,000 direct jobs and 6,000 indirect. The bet is equal in terms of internationalization, being present in 78 countries with an annual turnover in excess of 1,500 million euros.
Still haunt me doubts arising from their intended purpose funds and the "small errors" in their advertising. Perhaps distrust arising from certain events of the past, but from an economic point of view I can not but be suspicious of information provided by the company. According
communicates the New Rumasa , attracting capital will be earmarked for the acquisition of mature companies with large growth potential. For what it's supposed to be acquired themselves who will bear the amount of the purchase and profitability derived from the notes. And, frankly, in the areas in which you want to invest the company achieve such performance and looks like a pipe dream, but who are also on sale like a fantasy.
The most common way of dealing with this type of operation is by issuing long-term debt in the form of bonds, debentures, etc. But if you resort to long-term debt, the CNMV there if it comes with its oversight and control. Not like this time that New Rumasa admitted the "mistake" to include advertising in the operation had been approved after consultation with the CNMV. Error or deliberate lie "? Let each one form his opinion.
is why we start making bond issues without control, without knowing the possible organization of secondary markets for them and without knowing the exact amount of which there are in circulation suggests the possible creation of a huge ball paper ball (see entry: boot, boot the ball ...? - Blogs Circle Business Gazelle).
Moral: every investor should be consistent with the risks that decide to run with their investments. And in the case of "bees", they can bite ...
Signed .
John V.
gazelle circle
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