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Strategies & Market Trends : Value Investing
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To: Mario :-) who wrote (62367)8/14/2019 9:00:59 PM
From: E_K_S  Read Replies (1) of 78774
 
I would rather just stay away w/ companies that have so much debt. Unless management has shown they plan to pay down that debt from EBITD (like BGS and/or UNFI) but then they still need the FCF and revenues to do that.

Not sure if/when we go into a recession if the FCF on a lot of these companies will continue. Therefore, I am looking for those value Buys that provide a product/Service that is a must have in a recession (food, utility, telcom and others). The first to sell off significantly are all those growth story stocks w/ no earnings.

Even my so-called value buys of 8 months ago, probably have too much debt (although they are paying it down) since many are doing that on a multi year schedule. Recession if it comes is less than 24 months away.

Also, can this debt be rolled over and/or pushed out. Going to be a problem and now I see Moody's downgrading debt (DF was downgraded to CCC) so that may/could become an issue for the companies that want to refinance and/or expand their credit facility.

Socash reserves are good but IMO huge debt coming due worse.

Good Investing

Keep the names coming. Remember Buffet sitting on tons of cash, so I expect he is looking at a lot of names too.

FWIW, Did you see this today?
Tumblr Sold to WordPress by Verizon After Yahoo's Purchase

Tumblr was gotten by Verizon in 2017 through its the purchase of Yahoo Messager after it was bought by Yahoo for $1.1 billion. Verizon sells Tumblr to Wordpress owner six years after Yahoo bought it for $1.1 billion and details of this negotiation of weren't disclosed by either party.

EKS
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