Kunleesp is just confused. I don't know why he is still here. He says my reason for starting this thread is that I want to keep it on the top so I can scare people. Yet he is helping me by posting many posts to keep it on the top. This guy, something is wrong with him. Anyways, let's discuss what he is saying, since he has mentioned something at least a bit interesting.
Shine has around 30 mil debt and 170mil of equity, hence 19%.
Slater has around 700mil debt and 1500mil of equity, hence 40-50%
Equity means all the money that is put into a company, made in the company, and minus the money that's lost and took out. It is a not a very meaningful measure in many cases. Most companies don't even sell for equity, so therefore for a bank to use debt to equity is not very useful.
What Kunleesp is saying, 19% is Shine's debt to equity, while 200% is for Slater's debt to market cap (actually that would be 300% since Slater's market cap is only 200mil now). He is comparing two different stats, obviously he is confused about the 19% number. He just read it somewhere on this website and thought it was debt to market cap, but it was actually debt to equity.
The best measure is debt to potential earning power. However, potential earning power is not a objective stat, so therefore this ratio is not often mentioned. But just think about it. If you get a loan from a bank to buy a house, one of the main things they look for is your earning power.
Shine has a potential earning power of around 30mil according to my subjective call and they have a debt of around 30mil too. So therefore the ratio is around 1 year to pay off debt if they want to in a normal earnings year.
Slater has a potential earning power of around 150mil according to my subjective call and they have a debt of around 700mil. So therefore this will definitely take longer to pay off compared to Shine.
Finally, Kunleesp have mentioned that I am suggesting Shine will go bankrupt. I don't know how he reads my sentence. The word 'they', clearly is referring to Slater. Slater is a company, I can't call them he or it, I call them 'they'. Just because Shine was mentioned a few words before Slater, he is all scared. I don't think he reads anything here properly. All he does is go around cherry picking stuff to suit his needs.
Expand
(20min delay)