what a pile of schist, page-20

Bacci,

In regard to gearing, you have misinterpreted Investopedia. When they talk of a ratio of long term debt to capitalization they are not talking about market capitalization. The use of the word "capitalization" refers to the money raised by the company through shares that have been issued. They give the formula for their definition as equal to (long term debt)/(long term debt + preferred stock + ordinary stock). Whatever formula you use, gearing is a ratio of what you owe to what you own. It is about the mix of debt to equity and has nothing to do with the share price.

The fact that the market cap is low when compared to the net assets (i.e the excess of assets over debt) of this company just suggests to me that investors are buying very cheap assets at these prices.

GPASAS