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Non-Tech : Hvide Marine HMAR - High Growth, Undervalued

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To: Wallace Rivers who wrote (316)3/22/1998 3:10:00 PM
From: michael meyers  Read Replies (1) of 547
 
While I'm not happy about the reason HMAR shifted to debt [lower stock prices]; I am happy that they are using debt rather than equity to finance their expansion. In the total scheme of things, debt has a *lower* required return than equity [If not, we would all buy bonds rather than stocks.] Equity is not free money, but in fact dilutes the earnings per share. Debt is good.

Michael
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