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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (19964)10/28/2004 11:07:42 PM
From: Spekulatius  Read Replies (1) of 78662
 
re BUD What i don't like with BUD is that they have been increasing their debt steadily over the last years, mostly due to the cash spend on stock buybacks. This has steadily reduced the # of stocks outstanding and subsequently increased their earnings/share growth rates. I feel that given the current debt levels this is not going to be sustainable much longer. If BUD bites the bullet and reduces the stock buyback to conserve cash the earnings growth rates will fall deep into the single digits which will make a stock with a P/E of 19 anything but cheap.
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