SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : SAFESKIN
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John A. Stoops who wrote (595)3/2/1999 9:35:00 AM
From: Steven Dopp  Read Replies (1) of 828
 
What I don't understand is why they borrowed money to buy back stock, particularly when their debt/equity ratio is so high. Management is certainly making a big bet on their ability to increase sales and revenues buy heaping on so much debt. Can anyone shed some light on this?

Their last report strongly suggests that they can pay off their debt in a year or two. Plus, given a rapid growth in the equity side of the equation, the debt/equity could (should?) return to reasonable levels within a year.

FWIW, I consider myself to be a long-term investor. I can wait a year or two.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News