Thanks for the excellent thread Eric. In all honestly, I don't have the accounting skills to fully comprehend the difference in the ratios. Sure I "get it" PG's debt/EBITDA ratio is golden and KHC,T And CVS not so golden (I own all three BTW). This may come off as amateurish but all I can do is take the relative ratings, and then add the 30,000 ft big picture view. Most of the staples concern me because they no longer have the guaranteed stability when things get bad with extreme debt. Growth is anemic for most of them already. What if things go bad next year with a pile of debt?
-I once thought the HEINZ ketchup moat was deep and wide. lt's looking a little shallow right now. What are the chances they see a 5% revenue dip? What happens to their credit rating and dividend then?
-I like to pretend CVS/Aetna will be just fine. I don't know that with political banter, and Amazon waiting to disrupt. They don't have much room for disruption from any source at the moment.
-T better get this merger right. It's not a slam dunk. If it was, this stock wouldn't have missed the last few years of the bull run. Everyone says T can pay down their debt. Seems to me the market says this outcome is very much in question.
-I once thought the HEINZ ketchup moat was deep and wide. lt's looking a little shallow right now. What are the chances they see a 5% revenue dip? What happens to their credit rating and dividend then?
-I like to pretend CVS/Aetna will be just fine. I don't know that with political banter, and Amazon waiting to disrupt. They don't have much room for disruption from any source at the moment.
-T better get this merger right. It's not a slam dunk. If it was, this stock wouldn't have missed the last few years of the bull run. Everyone says T can pay down their debt. Seems to me the market says this outcome is very much in question.