DocuSign Shows How Gigantic the Blind Raging Mania Was and How it Suddenly Went to Heck | Wolf Street

DocuSign also loaded up with debt, including convertible bonds. It issued the most recent one, a $600-million three-year bond, on January 13, 2021, when its shares were still riding high and higher and only the sky was the limit.At the time of the bond offering, the share price was $262.65. The deal was that each bond (face value = $1,000) could be converted into 2.38 shares on January 15, 2024, when the bond matures — hence, at a conversion price of $420.

The bond doesn’t pay interest. Investors lent the company this money in hopes of being able to convert the bond into shares that hopefully would be well above $420.

What these numbers show is that the market had become a gigantic Fed-fueled blind raging mania where no one could have a single clear thought and money no longer mattered. And the hangover from this raging mania is now being felt across these hype-and-hoopla stocks.

DocuSign Shows How Gigantic the Blind Raging Mania Was and How it Suddenly Went to Heck | Wolf Street

Zero Profit, zero potential and hyping bond sales with promise of even more hyped up profit in the future.

In the game of musical chairs, who is left without a chair when the music stops?