Troubled smartphone maker BlackBerry said it would raise about $605 million (roughly Rs. 4,062 crores) by selling convertible debentures to shareholder Fairfax Financial Holdings and other investors.The Canadian company will also redeem on September 2 roughly $1.25 billion (roughly Rs. 8,393 crores) worth of outstanding debentures carrying a coupon of 6 percent, it said on Friday.The new debt that BlackBerry plans to issue will have a coupon of 3.75 percent and will be due in November 2020.If all of the new debt is converted into stock, it will represent about 11.57 percent of BlackBerry's outstanding shares, the company said.FairFax, led by well-known contrarian investor Prem Watsa, is BlackBerry's second largest shareholder with a stake of about 8.9 percent, according to Reuters data.Once a dominant force in smartphones, BlackBerry now holds just a sliver of the global market.BlackBerry said last month it would stop making its Classic model, raising further doubts about the future of … [Read more...] about BlackBerry to Raise $605 Million From Shareholder Fairfax, Others
A Google shareholder sued the company's board of directors and senior management on Thursday, arguing that the tech giant's leaders breached their duty to investors when they covered up sexual misconduct by executives and gave harassers large payouts. The suit, by shareholder James Martin, stems from revelations last year that the company awarded a $90 million (roughly Rs. 630 crores) exit package to executive Andy Rubin, the creator of the Android operating system, even as Rubin was being pushed out over sexual misconduct. Google had asked for Rubin's resignation in 2014 after determining that allegations that he had coerced a woman into performing oral sex in a hotel room the previous year were credible. Rubin was celebrated when he left Google, and the real reason for his departure was made public by the Information and New York Times, which also reported the payout. Rubin has denied the allegations. The story has roiled Google's workforce, a #MeToo moment that prompted thousands of … [Read more...] about Google Shareholder Sues Company Board, Senior Managers for Allegedly Covering Up Sexual Misconduct
Canadian investor Prem Watsa was “purposely forgetful” and offered a “mindboggling” explanation in court testimony explaining why he backed a low-ball bid for a pulp mill in a sale to Resolute Forest Products Inc., a Montreal judge concluded in the seven-year-old case. Testimony by Watsa, chairman and chief executive officer of Fairfax Financial Holdings Inc., was so problematic it helped convince Montreal Superior Court Justice Michel Pinsonnault to award some Fibrek Inc. shareholders $13.5 million, plus interest. Fairfax “was in a blatant conflict of interest situation,” the Quebec judge said in his Sept. 26 ruling. “Watsa’s testimony was so vague and filled with so many uncertainties, unlikelihood, unsubstantiated denials and contradictions that it is very difficult for the court to give credence to the affirmations and explanations of the witness whose memory appeared to be failing on the most crucial aspects of his testimony,” … [Read more...] about Investor Prem Watsa’s ‘mindboggling’ reasoning in takeover prompts judge to award shareholders millions
As every investor would know, you don't hit a homerun every time you swing. But serious investors should think long and hard about avoiding extreme losses. We wouldn't blame Jaguar Health, Inc. (NASDAQ:JAGX) shareholders if they were still in shock after the stock dropped like a lead balloon, down 98% in just one year. While some investors are willing to stomach this sort of loss, they are usually professionals who spread their bets thinly. We wouldn't rush to judgement on Jaguar Health because we don't have a long term history to look at. Shareholders have had an even rougher run lately, with the share price down 74% in the last 90 days. We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson. See our latest analysis for Jaguar Health Jaguar Health isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably … [Read more...] about The Jaguar Health (NASDAQ:JAGX) Share Price Is Down 98% So Some Shareholders Are Very Salty
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Endava plc (NYSE:DAVA), by way of a worked example. Endava has a ROE of 14%, based on the last twelve months. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.14. See our latest analysis for Endava How Do I Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Endava: 14% = UK£24m ÷ UK£166m (Based on the trailing twelve months to June 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all earnings retained by the company, plus any capital paid in by shareholders. You can calculate shareholders' equity by subtracting the company's … [Read more...] about Does Endava plc (NYSE:DAVA) Create Value For Shareholders?