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Non-Tech : SPIN-OFFS "secret hiding places of stock market profits"
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To: Stewart Whitman who wrote (1000)8/5/2006 9:30:35 AM
From: cfimx   of 1185
 
i've looked at this one some more..I don't think low margin high margin is the right way to look at investments. I think return on capital is. After all, a well run distributor like (SYY) can be a fantastic business. The numbers work here. The company looks like it has plenty of room to pay higher interest, pay cap-ex, pay dividends (increase them actually) and still have $400m per annum left over to pay down debt. Given there are around 210m shares out, the paydown means almost a $2 transfer of wealth per annum from debt holders to shareholders. Me likey. But not in big gulps. ;-)
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