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.
Caterpillar on Mining and Commodities [View article]
Hi Judy,
Thanks for the posts. I appreciate them hugely!
CAT seems to have a better handle on the current economic climate than many companies you've reviewed recently. I noticed a lack of uncertainty with their comments, and concrete plans for responding to the global slowdown that has (finally!) been acknowledged by governments on every continent.
Let's hope that more of this type of responsiveness is forthcoming, rather than the uncertain handwringing we've come to expect.
Cramer's Mad Money - You Can Buy Pretty Much Everything (11/16/09) [View article]
Doesn't make any sense to me.
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.
Caterpillar on Mining and Commodities [View article]
Thanks for the posts. I appreciate them hugely!
CAT seems to have a better handle on the current economic climate than many companies you've reviewed recently. I noticed a lack of uncertainty with their comments, and concrete plans for responding to the global slowdown that has (finally!) been acknowledged by governments on every continent.
Let's hope that more of this type of responsiveness is forthcoming, rather than the uncertain handwringing we've come to expect.
ATB,
Bill