Just read your inital post. Great write up! Some incredible revenue growth and they post amazing ROE % year-on year. Does the level of debt not worry you though? If they hit one speed bump they could get in serious trouble and be forced to dilute/restructure.
It's tempting but I can't help but think of Buffetts foray into retailing with Hochschild, Kohn & Co. and he managed to just get out by the skin of his teeth and break-even on his investment but he was lucky not to lose money.
Forgot to add I've been looking closely at Catana Group over the last year or so. Couldn't agree with you more on that company. If it were to stay at these price levels for another 12 months or so it could be one of the best investments out there in the small cap world.
Just read your inital post. Great write up! Some incredible revenue growth and they post amazing ROE % year-on year. Does the level of debt not worry you though? If they hit one speed bump they could get in serious trouble and be forced to dilute/restructure.
It's tempting but I can't help but think of Buffetts foray into retailing with Hochschild, Kohn & Co. and he managed to just get out by the skin of his teeth and break-even on his investment but he was lucky not to lose money.
Forgot to add I've been looking closely at Catana Group over the last year or so. Couldn't agree with you more on that company. If it were to stay at these price levels for another 12 months or so it could be one of the best investments out there in the small cap world.
Are you including lease debt also as debt? I think the current levels are not that high.