Just hoping to get some opinions on shorting Microchip Technology. Their stock is up around a 100%, since mid-2012, while:
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Their profitability is declining;
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Margins are insanely tight;
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Debt is rapidly increasing, while tangible assets are pretty much the same;
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They will have to issue new bonds this year at a most likely higher coupon rate than their previous ones.
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dividend payout ratio is unsustainable;
Not sure if I'm just missing something or if this actually is a good idea to short. Was thinking of buying some Jan 2018 puts.
EDIT: Formatting
Submitted February 25, 2017 at 12:09PM by P4V4 http://ift.tt/2kX9KhX
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