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The article raises some interesting points;

1. Margins are decreasing and becoming razor thin. There is clearly nowhere to go with this any more. Is this how they have driven growth? If so, how will they maintain any growth momentum? Very concerning - not cheap and not sustainable!
2. Working Capital is down to $500 MM from $3,500MM. This is a good thing! At least as I understand. WC is what you need to run the company month to month - the sum of inventory plus AR less AP. How you finance is a second and separate issue. Thus I do not understand the article's 'funny part' comment linking the bond issue to WC. Balance sheet yes, WC no.
3. Debt or equity. The article raises the issue that management/board would sell more shares if they felt the price was inflated. Sounds like they do not since they have chosen the bond route. So insiders think it is undervalued? This could be good.
4. What will they use the cash for over the nest few years? This is a disturbing question and the essence of a final judgement. If they need this cash to cover any operating deficits, the company is in trouble. Hopefully, the board and management have identified an opportunity to invest in the business with a superior return - new acquisitions, new products or services, or organic expansion. Without this insight, how do we make a reasonable evaluation of the bond issue?
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