Net Profit before Interest and Tax / Debt Interest Ratio 

will indicate whether the Debt Leverage brings in

POSiTiVE or Negative Effect. 

As lOng as the Debt Leverage Effect is POSiTiVE, it is a Benefit.

Otherwise, it is a Damage.

Thanks for your research.

HiGH  Debt / Equity RatiO  gives gOOd  Leverage  On Other peOple's mOney  during bOOm ecOnOmy.

When ecOnOmy is nOt  gOing nOrth,  it  is  Safer tO have less Leverage with Other peOple's mOney [OPM].

cOst of OPM is HiGH tOO and the returns are pOssibly  lOwer in pOOr ecOnOmic TiMES.

The  QUESTiON  is  whether  the  wOrld  ecOnOmy  is  gOing  nOrth  or sOuth  ? ? ? ?

hmm... You mean stage of losing?? haha...

iPunter      ( Date: 07-Jul-2010 16:42) Posted: To reach Isolator's stage of feeling requires        much real experience through the years...  boyikao3      ( Date: 07-Jul-2010 16:25) Posted: Yes I think you are very wise indeed ! In trading or investing, feelings should overide all fundamentals and technicals. If you feel right, just do it. No need think too much and waste energy.

To reach Isolator's stage of feeling requires

       much real experience through the years... 

boyikao3      ( Date: 07-Jul-2010 16:25) Posted: Yes I think you are very wise indeed ! In trading or investing, feelings should overide all fundamentals and technicals. If you feel right, just do it. No need think too much and waste energy. Isolator      ( Date: 07-Jul-2010 11:09) Posted: Why bother about all this.... I prefer to use only my feeling.. ha...

CoscoCorp's Debt/Equity Ratio has been increasing since 2006, from 1.4 to currently 3.0.

Whereas its counterpart, Yangzijiang's Debt/Equity Ratio has decreased from 2.5 to 1.6.

For capital intensive industries, like shipping and construction, companies should try to keep their Debt/Equity Ratio below 2.

So from Fundamental standpoint, CoscoCorp's Debt is a bit high.

Which kind of debts?

What are COSCO's Level and Extent of debts?

Is  COSCO  generating OperatiOnal CASH flOws ?

alexchia01      ( Date: 07-Jul-2010 10:56) Posted: Their biggest problem is debt. If they can reduce their debt this year, CoscoCorp would be a good counter to Buy. Isolator      ( Date: 07-Jul-2010 10:30) Posted: Seems like I am the only believer left for Cosco.... I need to follow my feeling...Never give up...

Their biggest problem is debt.

If they can reduce their debt this year, CoscoCorp would be a good counter to Buy.

Isolator      ( Date: 07-Jul-2010 10:30) Posted: Seems like I am the only believer left for Cosco.... I need to follow my feeling...Never give up...