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+--- Thread: Calculating the revenue hit from loss of interest (/showthread.php?tid=5016)
Calculating the revenue hit from loss of interest - tacitusk - 10-31-2013
Im not sure if this was already done or not. As we know, NQ is moving $100 Million (of $128 million) from their time deposits to Standard Chartered. Since they are moving $100M, the $28M which will be left behind which will likely be accounts 2 and 3. Accounts 4 - 13 will be penalized for early withdrawal. I took each account except the three I do not believe will be penalized and assumed they will lose 100% of the accrued intrerest. Once the cash is verified they will hopefully be able to return it to these time deposits.
From my somewhat sloppy spreadsheet you can see this move will cost the company about $1M, which I believe is less than what was previously assumed.
RE: Calculating the revenue hit from loss of interest - admin - 10-31-2013
Thanks for that. They'll live, it's idiotic that this was necessary, perhaps they can add it to the bill when they sue for damages. Oops, they've already done that..
RE: Calculating the revenue hit from loss of interest - chenlica - 10-31-2013
'admin' pid='30604' datel Wrote:Thanks for that. They'll live, it's idiotic that this was necessary, perhaps they can add it to the bill when they sue for damages. Oops, they've already done that..
even with this shortsellers are raising silly questions like "why do they wire in this amount today looks suspicious"..."they've got tons of cash from MS&DB just weeks ago that saved them"...shorts are always distorting no matter what
RE: Calculating the revenue hit from loss of interest - tradestar2012 - 10-31-2013
Bummer. $1million is a $0.01-0.02 hit to eps over the course of a year. It will not affect 3q #'s but will affect eps going forward.
RE: Calculating the revenue hit from loss of interest - Bondguy8 - 10-31-2013
'tradestar2012' pid='30611' dateline='<a href="tel:1383191 Wrote:Bummer. $1million is a $0.01-0.02 hit to eps over the course of a year. It will not affect 3q #'s but will affect eps going forward.
What is right multiple to use and who is their best comp due to the different business segments?
RE: Calculating the revenue hit from loss of interest - tradestar2012 - 10-31-2013
'Bondguy8' pid='30614' datel Wrote:
'tradestar2012' pid='30611' dateline='<a href="tel:1383191 Wrote:Bummer. $1million is a $0.01-0.02 hit to eps over the course of a year. It will not affect 3q #'s but will affect eps going forward.What is right multiple to use and who is their best comp due to the different business segments?
You might want to look at articles by Toro and Treasurehunter on seeking alpha. They have a broad comp set and valuation metrics.
RE: Calculating the revenue hit from loss of interest - admin - 10-31-2013
["You might want to look at articles by Toro and Treasurehunter on seeking alpha. They have a broad comp set and valuation metrics."]
And NQ was busting their combs in the 20s, go figure what they do now..
RE: Calculating the revenue hit from loss of interest - Stavros - 11-01-2013
My guess is they may have been able to negotiate a short term withdrawal of the $100 million without a penalty in return for assurances that the money would be re-deposited in due course
RE: Calculating the revenue hit from loss of interest - kshen - 11-01-2013
short term withdrawal of 100M? that seems farfetched. The whole point of the term deposit is they're going to use your money to invest that why they give you that interest rate. If they give it back to you, then it would defeat the purpose.
RE: Calculating the revenue hit from loss of interest - Stavros - 11-01-2013
Banks make deals with preferred clients all the time mate. This isn't a $10,000 term deposit that you made. It's $100 million! If it were me, I'd cut NQ some slack for a few months if they promised to re-deposit the bundles of cash again.
If not then NQ loses the penalty but won't go back to this bank ever again.