Daily Discussion Thread for May 04, 2020

APPL: Get on board before they tell the world how much debt they are issuing: https://www.marketwatch.com/amp/story/guid/5530FFCD-AE99-426F-8A3C-4B0FF31B4412

Reason to believe they think their price has bottomed out.

They are modifying their capital structure at a perfect time: They think their optimal structure is too equity-driven, i.e. risky. Issuing debt now will reduce the company's future required cost of capital once the company starts trading at regular levels.

Cash tax rate is low, their credit rating hasn't changed since '13, interest rates are low = APPL's solvency risk shouldn't be highly affected with more debt.

Lower cost of capital = Higher target price per share. APPL is a great long term play here

/r/wallstreetbets Thread