THE FINANCE GHOST: Attack of the capital stack

  • 📰 FinancialMail
  • ⏱ Reading Time:
  • 20 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 63%

Canada News News

For investors, be careful of management teams who are juicing up returns with regular corporate actions funded by debt

If you’re only looking at the income statement when figuring out which shares to buy, you are suffering from a huge blind spot in your investment analysis. Not sure why? Have a look in a dark, sad corner for a shareholder in Steinhoff, Nampak or Tongaat. In a pool of tears, you’ll find some of the answers.

The income statement tells you a lot about how the company makes money and very little about where that money goes. You can have the most profitable business in the world, but if the keys are held by the bank and the preference shareholders, it hardly matters. As an ordinary shareholder, you can be stuck outside the window in the snow, watching everyone else eat the Christmas gammon...

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 20. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

THE FINANCE GHOST: Attack of the capital stackFor investors, be careful of management teams who are juicing up returns with regular corporate actions funded by debt Amen - AND.... be very careful of empire builders e.g., EOH, Aspen, Ascendis etc. Not all growth is good and acquisitions in most cases are value destructive. Acquisition sprees is a BIG SELL SIGNAL.
Source: FinancialMail - 🏆 20. / 63 Read more »

Personal Finance | Choices and financial freedom | City PressPersonal Finance | Choices and financial freedom: The choices we make today will be the future we live. Will it be one tethered to fear or one where we are free to explore? Asks Maya Fisher-French
Source: City_Press - 🏆 7. / 72 Read more »

Personal Finance | The difference between ‘good’ and ‘bad’ debt review | City PressEarlier this month, Capitec sent out a warning to its customers about false advertising by certain debt counsellors: “Have you ever been promised immediate debt relief or a payment holiday that doesn’t affect your credit score? The scenario of Bitcoin going to zero does not anymore.Bitcoin is playing much the same role as gold did in the early days of banking You all should Follow AdamTreyton he knows how to deal with bitcoin and other cryptos,his tweet have been really helpful over the years Choosing the right investment strategy can reduce your risk and make the most of your money. I have made over R89,670 profit this year regardless the market condition not just by buying the dip but understanding & implementing trade with signals supplied by TrevorCarlson0 I made a lot of progress so far with Leticia_thomas7.I was lucky to find some recommendations about he's good works.and I was determined to give it a try, it wasn't long I started and I have recovered 100% of what I lost to those scammers. thank you once again Leticia_thomas7
Source: City_Press - 🏆 7. / 72 Read more »

Germany's KfW lends Tunisia 300 million euros to finance developmentGerman state lender KfW (KFW.UL) on Friday lent 300 million euros ($319 million) to Tunisia to finance projects in renewable energy, water and rural development, officials said.
Source: ReutersAfrica - 🏆 31. / 53 Read more »

Eskom reports net loss of R12.3 billion - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Eskom has reported a net loss of R12.3-billion for the year which ended 31 March 2022. The power utility says the financial loss is largely due to high finance costs and the usage of Open Cycle Gas Turbines to supplement generation capacity. Rates going up Don't forget BBEEE+ too... and corruption. Where is Numsa with this Unions are not representing works they are the elite. if you can look at the benefits you will be amused am telling you 😒
Source: SABCNews - 🏆 37. / 51 Read more »