clime capital investment, page-2

Roger bases his decisions on return on equity and whether or not a company is paying a dividend.
He likes companies with high return of equity that retains profits basically. The logic being that the money is better in a business earning 20% than in a bank.

The problem though with CCP is that the company has 168% debt.
Such high debt distorts the ROE picture dramatically and over inflats the the figure.

If you look at the ROC which includes debt, it is around 7% and the ROE is about 30% from memory.

Anyway having said that I own shares in the company so I am an owner.