Investing with debt - Opinions please!

[shasta]

Dont worry Snoopy i wont be advising Darkred into buying PGW!

All the companies i posted about have no debt (most have reasonable cash to fund drilling campaigns) & most are low EV's under $10m, with tight capital structures & many have larger JV partners funding the drilling

[Snoopy]

Dont worry Snoopy i wont be advising Darkred into buying PGW!

All the companies i posted about have no debt (most have reasonable cash to fund drilling campaigns) & most are low EV's under $10m, with tight capital structures & many have larger JV partners funding the drilling

Having the money and technical backing to develop a mining site is dodging the question Shasta. The question was are they cashflow positive today? I suspect the answer is no.

SNOOPY

[shasta]

Having the money and technical backing to develop a mining site is dodging the question Shasta. The question was are they cashflow positive today? I suspect the answer is no.

SNOOPY

Actually Snoopy, all due respect but you seem to be dodging the main point. None of the companies i posted have ANY debt, which was the premise behind your earlier post.

Thus Darkred is not multiplying his risk by utliising debt to invest into companies with debt.

If he requires companies with reliable cashflows who pay high yielding dividends (on a sustainable ongoing basis) i have many other options for him to look at

[Snoopy]

Actually Snoopy, all due respect but you seem to be dodging the main point. None of the companies i posted have ANY debt.

Thus Darkred is not multiplying his risk by utliising debt to invest into companies with debt.

OK , I see your point and agree with this.

SNOOPY

[Snoopy]

If he requires companies with reliable cashflows who pay high yielding dividends (on a sustainable ongoing basis) i have many other options for him to look at

Actual cashflows are required to pay interest bills. Promises of cashflows don't cut it.

SNOOPY

[shasta]

Actual cashflows are required to pay interest bills. Promises of cashflows don't cut it.

SNOOPY

If he invests in companies without debt, wheres the interest coming from?

If you mean obtaining a return to cover the interest on his property loans @ 6%, there are plenty of stable companies who pay better than that!