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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Dave who wrote (19980)10/29/2004 10:15:40 AM
From: Spekulatius  Read Replies (1) | Respond to of 78664
 
Dave, good comment. I do understand that BUD's debt coverage is good with about 10X interest coverage. My argument is simply that I would not pay for the part of BUD's earnings growth that is simply a result of piling on debt. i think this is roughly 2% earnings growth/year. Also BUD pays only 5% interest rate on their *B$+ debt , i think this will go up as interest rates increase.