Forum Archive Index - April 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Viewpoint,
 
>
>
>Interesting piece by Snoopy on the FIG message board discussing
>whether 'debt is good'. Was this prompted by our recent discussion
>around Telecom?
>
>


It was the discussion on Telecom debt that got me to post the summary 
to my long running series on debt. yes.  However followers of the 
focus investment group will know that what I have said in that does 
not apply to Telecom, as Telecom did not pass our initial four 
screening criteria.  In other words, Telecom is not a FIG company. 


>
> 
>Some numbers out of the US concerning the high levels of corporate
>debt make sobering reading.
><snip>
>
>



There is corporate debt and there is corporate debt.   Some companies 
can stand lots of debt.   As I argued in that FIG article, it is 
good for them.   Others cannot.  This is why I believe it is 
difficult to have a simple 'rule of thumb' on debt.

If you look on the FIG board again you will see another article, 
discussing Telstra's debt.  Again Telstra is a large and complex 
company so any discussion on Telstra's debt will have to be broken 
into several parts.  However, because Telecom NZ is an integral part 
of the Australasian market where Telstra operates, there is some 
discussion on the Telecom debt too.  Just pointing it out in case any 
TEL followers are interested. SNOOPY



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