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

To: Spekulatius who wrote (56948)	2/20/2016 12:10:56 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78756

Which multiples are you referring to? ETP has been FCF negative for most of the post-crisis period. Shares outs have almost tripled since 2010 and LT debt has quintupled. This reminds me of the Ponzi scheme playing out at UDF; the notion that the purchased assets can cover even stable distributions is an unproven hypothesis. The hyper leverage I'm referring to is high CapEx plus high D/E. The problem is that now they have to (1) figure out how to service their existing debt in a tighter credit environment (2) figure out how to sustain their "business model" when new capital is no longer forthcoming.