New One Year High, page-54

well in an ideal world a company would have no borrowings and thus no risk from downturns or interest rate rises. There is also a school of thought, that says companies should pay no dividends and reinvest everything for growth.

However SIQ is a dividend play. It attracts shareholders who expect good dividends. I think it has been quite responsible in cutting what it has paid out. Borrowing is not really that much of an issue - it’s more about timing of cashflow rather than paying out money they don’t have. Debt doesn’t seem too bad.