Friday, December 05, 2008

Canwest Dust-watch

Gotta quit joking when I make posts. The other day, I snidely noted the stock was sinking towards a half a buck.

Today's reality:

52 cents, a new New all-time low.
Do I hear half a dollar?


Meanwhile, the Asper family has fallen from the list of Canada's 100 Wealthiest Canadians. Inheritance taxes should have caused that long ago. Every Western country has them, but we don't.

Can they take CanWest private?
No. They don't have the money. No one would lend against this stock and the company's already way over-mortgaged at a time when no one is lending for anything that's not a sure thing.
A friend noted something the other day: the Ottawa Citizen alone is probably worth more than the stock value of this company.
Thus is the lesson learned from this most recent leveraging bubble.
BTW, I want Niall Ferguson's new book on money and finance. If I had money to waste, I'd send copies to Lennie, Gail and Dave.

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