Q: Hi Peter and team,
Reading some of your past comments on Cascades Inc your main concern is with their large level of debt. Looking at MSN.com, they show that the company has a debt/equity ratio of 1.2. When comparing this to another company that you really like (GSY), MSN.com shows that it has a debt/equity ratio of 1.5 - much higher than Cascades, but you don't ever mention the higher debt/equity ratio of GSY.
Could you please tell me why Cascades debt level is a much greater concern for you than GSY's debt level, even though GSY has a much higher debt/equity ratio?
I'm considering purchasing one or both of these stocks and just trying to understand why your much more negative on Cascades than GSY (and I know they're in different sectors and tough to compare the two).
Cascades trading much lower than price to book and looking pretty attractive at these levels.
Thanks in advance
Reading some of your past comments on Cascades Inc your main concern is with their large level of debt. Looking at MSN.com, they show that the company has a debt/equity ratio of 1.2. When comparing this to another company that you really like (GSY), MSN.com shows that it has a debt/equity ratio of 1.5 - much higher than Cascades, but you don't ever mention the higher debt/equity ratio of GSY.
Could you please tell me why Cascades debt level is a much greater concern for you than GSY's debt level, even though GSY has a much higher debt/equity ratio?
I'm considering purchasing one or both of these stocks and just trying to understand why your much more negative on Cascades than GSY (and I know they're in different sectors and tough to compare the two).
Cascades trading much lower than price to book and looking pretty attractive at these levels.
Thanks in advance