The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: DCO Ducommun Inc. bond||Date: 1/24/2013 4:22 PM|
|Author: globalist2013||Number: 34719 of 35498|
You are an unfailing contrarian indicator. Whatever "hot tip" you mention should be avoided.
From DCO’s balance sheet. “Goodwill” plus “Intangibles” exceeds “Current Assets”, meaning, DCO’s balance sheet is fluff. -“Current liabilities” exceed “ Current revenues”, meaning, they can’t make expenses much less profits. So, how are they going to pay bondholders, by going back into the market and borrowing more money? What will their interest rate be the next time, given than in an environment of nearly free money, they had to pay 9.25%? That's really going to make things easy for them.
Shall I continue? Well, how’s DCO doing compared to its peers? http://finance.yahoo.com/echarts?s=DCO+Interactive#symbol=dc...
In short, your “hot tip” doesn’t take even 2 minutes of looking at to show it to be the piece of trash it is. Give up trying to tip bonds. You don't know what you're doing.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|