Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

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

To: Spekulatius who wrote (46563)	2/13/2012 7:12:55 PM
From: Mattyice	Read Replies (1) \| Respond to of 78670

Clownbuck, Is there any concern with their very capital intensive business (capex seems really high to me) and minimal return on cash flows? This is a relationship that i do not think works at least not for me.... If china slows down any, my feeling would be you are left with an over invested company who cant cover their cost of capital (if that even matters). Also what is your take on the increasing debt load of the Japanese Govt and forever decreasing interest rates on the JGBs? This is also a relationship that i do not think can hold... i think its actually very toxic.... the effects on a large industrial would be not so good, if all of a sudden there cost of capital is say 8% or 10% and turns into 15%.... Personally i believe they could be the canary in a cold mine of sovereign debt drama...