IMPRISTINE,
where have i been? none of the heavy equipment makers or the fabs have had a decline equal to cymi. as i said, i still am missing something here.
the real risk in getting a high debt/equity ratio is that the company has no internal source of working capital, r&d suffers, and if not earning $ then the payments must come out of other sources.
my preferences for companies that are young and subject to fluctuations in income, is that they have zero long term debt. if you review all of the companies in the chipmaking business you will find that almost all of them have none. amat which has the highest r&d budget in the industry has a d/e ratio of 0.21. and, intel's ratio is only 0.02. so, when i see cymer, in an admittedly risky business from a technological perspective, with a ratio of 1.47, i am quite concerned as a stockholder. there are other places to take my risky capital. |
