ROTC:Rotech medical Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : ROTC:Rotech medical

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ken Crooks who wrote (139)	8/28/1997 11:44:00 PM
From: llwk7051@aol.com	of 161

Ken the ratings services are designed to give bond holders a risk rating for a particuliar investment. Many bank trust departments require an A rating or better for bonds. As a stock investor, it gives me an indirect read into how risky a stock is. If a companys rating is being downgraded it indicates to me the company is probably either having operational problems or taking excess risks. A lower rated stock means their is more risk. This means I would be less likely to value the Company as highly because of the risk of severe financial problems. Thus if I had two companys growing at the same rate and with the same earnings and both with similiar prospects, I would invest in the one with the least debt and the best financial rating. If others do the same, that stock will command a higher pe and will be better able to weather a financial setback. The more leveraged company may fail. This maybe something you already knew so I am sorry if I covered more than you want. All the ratings services are well respected and their opinions usually are well reasoned and understandable.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next