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Thanks for the response @Dazedandconfused. I think I'll do some...

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ALeeG

604 Posts.

52

05/09/21

15:10

Post #: 55843891
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Originally posted by Dazedandconfused: ↑

Hi ALeeG

interesting observation.

2007... money was being thrown around. Small caps with wild ideas were warmly greeted by bankers... ridiculous sums available. Then the crash and things became tough.

Could be signs of prudent management to raise now. Inflation looks like it's real (despite the deflationary effect of massive debt) so raising in future months might be harder (or more expensive). Rising raw material prices is already showing up in the blowout of CapEx for some mining projects trying to get into production.

Personally, one of my preferred investment criteria is a company has no debt and good cash reserves. I think it's particularly important going forward. Perhaps some of the companies you are noticing are run by competent managements and deserve a closer look? If the managements are using the money productively (and not 'lifestyle' types) then it might be a positive sign for those companies.

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Thanks for the response @Dazedandconfused. I think I'll do some more research into those I've noticed, and work out which are prudent, and which are lifestyle! IF there is a crash soon (a big if, I know), those that are cashed up could be a buy.
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