Paul,
I agree with you on this one too. Tough to judge their games with debt (and they definitely play them: see 12/31/2001 quarter). I would rather not have debt in the current climate. OTOH, they are reducing debt in the last 4 years, which is positive. Then the question is: what is the ROE when debt goes to 0? If it's comparable to their ROIC, the company is not so hot anymore:
quicken.com
BTW, management compensation seems to be reasonable.
I need to do more DD, but thanks for the pointer.
Ah, yeah, CX also looks good on ROE based return, but I discarded it, after thinking that I don't want to have the risk of Mexico based company. I am probably totally wrong on this assesment, but cement, debt and Mexico took their toll. <g>
Jurgis - any other views on LBY? |
