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Strategies & Market Trends : Value Investing

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To: bruces2006 who wrote (24453)	7/27/2006 12:13:28 PM
From: CrazyPete	Read Replies (1) of 78796

No I'm not saying their debt is short term; I'm not actually sure about the breakdown of short vs long term debt, it is irrelevant for the purposes of this discussion. Your ratios are meaningless because they are fundamentally nonsense for a financial services company. As an investor in GE, I would be almost indifferent to the high amount of interest they pay. As I said, GE Capital is a profitable business: GE issues AAA rated bonds at essentially the lowest interest rate available to a public company, and loans out that money at higher rates, so it receives >$1 for every $1 of interest it pays out. If you still can't follow this, I don't see how you have any business investing in stocks.

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