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Author: Har1en Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36  
Subject: Whassup with this stock? Date: 12/20/2004 7:24 PM
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I noticed this stock months ago (just before the drop that started the current upward trend). I saw that the company was paying out a dividend, but that they were apparently financing the divident payment with long term debt. I thought it looked fishy and stayed away, but now with the price recovered, I question my decision.

Why would a company do that? I am staying away from this puppy, but it looks like other people think it's a winner from the exorbidant P/E of 50+ for a company with marginal growth. Maybe there's something I'm not seeing. Ideas anyone? Is the additional debt going to finance some huge growth that I don't know about, and if so, why wouldn't they take out less debt and not pay that $6 dividend?
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