- First, Northwestern Corp. is offering common stock at a price of $51.50 a share;
- Next, there needs to be 6.77 million of those shares sold;
- Finally, 6.77 million shares at $51.50 comes out at $348,655,000.
That’s a damn lot of money, no question about that. The good news is that the stock closed out at $54.35 yesterday, meaning that $348 million could really be $367 million.
Don’t you just love finance, how overnight, and really by you doing nothing at all – no value created, nothing produced, not a single wage paid – you can make an extra $19.2 million? Gotta love it.
Well, that is until the whole damn thing goes to hell, then you’ll hate it. Because we all know that just as you sleep and make money, so too do you sleep and lose money.
Thankfully we have Obama at the helm, someone that panders to Wall Street and throws rose petals before them. How could that stock ever go down?
Let’s not think about that, for on November 10th this stock offering will be complete and Northwestern should have the $900 it needs to acquire those dams.
That’s great, because I know that when big names like Pierce, Credit Suisse, BofA Merrill Lynch, and J.P. Morgan are involved, not a damn thing could ever possibly go wrong.
I’m not a Finance major, and I just do small-scale business, so what does this all mean?
One thing that’s clear is that Northwestern will have an interest rate of 4.176% on these mortgage bonds, and that has to be completely paid off by 2044…30 years from now.
So…it’s like they’re buying a house, and borrowing a helluva lot of money to do it, and paying interest on it. Are they good for it?
I’d like to think so. And considering that Northwestern Energy employs 1,113 workers in Montana I’d like them to succeed. I mean, the thought of whatever pension or 401k options those workers having just being wiped out because the top brass of this company doesn’t know what they’re doing – I just don’t want to think about that.
And the prospect that one of them might get a little tear in their golden parachute and perhaps hurtle back down to earth faster than they’d anticipated? Let’s just not go there, alright?
Because, really, isn’t that what we’re getting down to here, isn’t that the damn bottom line? How long is this company going to be a going concern? Because I’ve seen one utility company in this state put on its sheep clothing and masquerade about as something else before, and it didn’t go too well.
Hell, I don’t trust any energy companies, and certainly not when our Public Service Commission is Republican-controlled, in bed with the energy industry and its blood-thirsty lobbyists, and in my opinion completely out of touch with my day to day life.
So when you see these little paragraphs about the dam news today, why not give it a little more thought, alright?
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