Interesting discussion, and the analysis seems reasonably accurate, as far as it goes.
This is only one area of investment research that a reasonable person would use. It appears to me that the author isn't saying that the only metric to use in your analysis is the debt/equity ratio, but it should be considered along with whatever other metrics matter to you--rate of new product development, free cash flow generation, competitive position, condition of the industry the company operates in--and base your investment decisions on your own research.
Book Review: Robert Hefner's 'The Grand Energy Transition' [View article]
I appreciate you bringing this book to our attention, despite the vitriol, misinformation, and just plain wrongheadedness exhibited by many of the posters.
I'm putting this at the top of my "To Read" books.
10 Dangerous Stocks to Avoid [View article]
This is only one area of investment research that a reasonable person would use. It appears to me that the author isn't saying that the only metric to use in your analysis is the debt/equity ratio, but it should be considered along with whatever other metrics matter to you--rate of new product development, free cash flow generation, competitive position, condition of the industry the company operates in--and base your investment decisions on your own research.
Book Review: Robert Hefner's 'The Grand Energy Transition' [View article]
I'm putting this at the top of my "To Read" books.
Thank you.