BUS 1301 Gazette - Practice Round 4

BUS 1301 Gazette - Practice Round 4 - Sherlock Sensors...

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Unformatted text preview: Sherlock Sensors Sells $10 Million of Debt By Blaine McCormick (reporting on industry F34635 for Practice Round 4) Sherlock Sensors recently sold $10 million worth of bonds to help finance their current expansion efforts. It’s the first bond issue for the company since beginning operations three years ago. Sherlock Sensors has enjoyed modest success in the electronic sensor industry posting solid profits for the past two years and doubling their stock price. Thus far, they’ve financed their growth through cash, a modest early stock offering, and the occasional use of current debt. In contrast, competitors like Censored, have grown faster than Sherlock Sensors through earlier bond issues and wise stewardship of the capital gained from those bond issues. “It’s good to see that Sherlock Sensors used these funds to make important capital investments like capacity and automation,” said sensor analyst Blaine McCormick. “You wouldn’t believe the number of teams that sell bonds to raise cash and then use that cash to retire existing bonds...
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