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


To: bruwin who wrote (9)9/10/2006 4:50:07 AM
From: pcyhuang  Read Replies (1) | Respond to of 4080
 
BVI, a tax haven

Quote: "A "worrying factor" to me (and I haven't done an extensive study of its overall Financials) is the very low Tax Rate of NTE. It's paying virtually no Tax".

The management is aggressive in that its corporate headquarter is located on the British Virgin Island, a tax haven. As a result, the company has more cash to plow back into the business for the shareholders.

pcyhuang



To: bruwin who wrote (9)9/13/2006 1:56:46 AM
From: Elroy  Read Replies (1) | Respond to of 4080
 
I also like to see no debt on a company's B.Sheet, as excessive debt expense just erodes Bottom Line.

Seriously? What if the company earn more on its investments than the cost of its debt? As long as the ROI is above the weighted average cost of capital, debt shouldn't be a problem. The company has to pay the interest expense, but if it earns more on the investment made with the debt than the expense paid on the debt, the company has created value.