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Strategies & Market Trends : Value Investing

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To: CrazyPete who wrote (24461)7/27/2006 1:33:19 PM
From: bruwin  Read Replies (1) of 78751
 
Don't sweat it, CrazyPete, if you can't make any sense out of it.

It looks pretty simple to me. If one replaces $15bil. Interest Expense with, say, $5bil. you GREATLY increase the Bottom Line, and Shareholders get A LOT more in Dividend.
And the company can still borrow +/- $75bil. to enhance their business. Once again, it still looks pretty simple to me.

But what if CP Industrial stuck to the business that it probably knew best, and on Total Revenue of $14 it had Total Expenses of $11, due to the lower impact of LESS DEBT, giving it a Total Bottom Line of $3.
That's a net profit INCREASE of 33% ! So who needs CP Financial ??!!

... and by the way, I don't believe I've ever resorted to speaking to you in a derogatory manner, irrespective of whether or not I've agreed with your opinion.
I don't appreciate being referred to as a "boob", as I'm sure you wouldn't either.
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