^V^ My cup of tea ^V^

High debt doesnt mean not worth for buying, look at UEMworld, uembldr, mrcb, all these high debt stocks rock like nobody biz ! why ? Maemode also having high gearing, does it mean she is no good also ?Most of its debtors r from player like Macdonald, nike, KFC, coca cola.. not safe enuf ? lionind n liondiv, they used to be high debt stock also, see what they r now ? This is all about "calculated risk " ! if u cant take d calculated risk, then forget about share investment^V^ No way u can find stocks with High ROE, high NTA, good cash flow, low pe, debt free n good management in BULL MKT ! can u ? u can only find d above in bear mkt ^V^

As long as its gearing is still manageable, Low PE + good future n sustainable earning is always my cup of tea ^V^ Of course nothing is certain in this world, based on my adopted method, i can safely say, my success rate is more than 80% n it is proven workable !

Now is yr turn to tell me if Swee Joo's debt too high n not manageable ?
***

Anonymous said...
hi samgang,

i was just wondering though, you have good insight on the company's pe and earnings / revenue / profit. but as you put last time around, low PE does not mean profitable, good ctr. there are quite other things that we have to look at. as probably shown by megan, who's under immense selling pressure now... as well as some other counters..

however, i notice that your call on ranhill, has not include the company's debt, which is as far as my limited knowledge tell me, is important in FA. the group's total borrowing amassing almost rm4billion, which is to me, quite a significant amount...

can you please explain the relevance of this debt towards your analysis?

thanks!

-slowday

May 23, 2007 11:25 AM

***