Baby Bear

Newell Rubbermaid's Compelling Value

This article fails to address the issue of the company's debt position. The debt is the sole issue as to why the valuation of this company has reached the level it has.
Is the expected cash flow able to service the debt? Will contracting operations allow debt requirements to be met?
If the servicing of debt is a non-issue, then the conclusion of the article seems accurate.
Please address main concerns if writing are to be considered.

Six Dividend Stocks Raising the Bar

LLTC only took on debt in order to buyback huge amounts of stock (don't remember exactly but about 1/4 to 1/3 of outstanding stock).

They attempted to take advantage of a great interest rate on convertibles.

One can argue how smart that was to do, but they had the shareholder in mind when instituting the transaction.

The debt will be easily handled and the company has already started paying down the amount of debt taken on convertibles (see most recent quarter)


On Jan 20 05:58 PM ArtfulDodger wrote:

> LLTC used to be a debt free company, but in the past couple of years
> it's taken on massive amounts of debt.
>
> It doesn't make sense to me that this company raised its dividend.
>
>
> I'd have to avoid it because of the debt.