Softechie :
Any opinions on MIR DYN? TIA
I didn't have any opinions on these two before you asked, but here goes:
Neither has a great position vis a vis their ability to meet their current obligations. MIR has a current ratio of .82 and DYN 1.06 (1.0 means you just have enough assets to cover current liabilities), so MIR has to borrow just to meet its nut.
Neither are a value relative to equity as MIR has a debt to equity ratio of 1.87 and DYN's is .83 (Here 1.0 means you don't have any equity and over 1.0 means your creditors can go whistle if you close your doors).
Both companies are sporting nice ROEs, but that's not hard to do when there is little to no equity. Because then, any return looks huge.
Normally, I wouldn't look past these numbers, but since you asked, I did a quick cash flow analysis on both for the last 4 quarters. DYN had positive cash flow and MIR had negative.
So.... of the two, I would say the DYN is the better company, but I wouldn't invest in either, because neither offer me a "margin of safety".
Some posters here, especially recently, seem to be far more in touch with the energy sector than I, and i will defer to their opinions, as they will probably be much more timely and include factors that raw numbers crunching don't consider.
Timba |
