Comments on: Middleby reports record earnings http://elginite.org/blog/2009/03/06/middleby-reports-record-earnings/ Wed, 23 May 2012 04:55:07 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: RS http://elginite.org/blog/2009/03/06/middleby-reports-record-earnings/#comment-46300 RS Sat, 07 Mar 2009 22:28:09 +0000 http://elginite.org/blog/?p=912#comment-46300 Yep, they have their work cut out for them just to service their debt. To grow their bottom line they would need to bring in new revenue sources through acquisitions, but the only currency they have is their stock, and targets aren't likely to go for that right now. And even if they <i>were</i> able to use stock, the dilution would probably mean their EPS does not improve. But they would be in a safer position as far as debt coverage. Yep, they have their work cut out for them just to service their debt.

To grow their bottom line they would need to bring in new revenue sources through acquisitions, but the only currency they have is their stock, and targets aren’t likely to go for that right now. And even if they were able to use stock, the dilution would probably mean their EPS does not improve. But they would be in a safer position as far as debt coverage.

]]> By: Paul http://elginite.org/blog/2009/03/06/middleby-reports-record-earnings/#comment-46299 Paul Sat, 07 Mar 2009 20:52:11 +0000 http://elginite.org/blog/?p=912#comment-46299 The problem with serial acquisitors in the midst of a recession/depression is servicing the debt load they also acquired, as sales and profitablity take an inevitable hit. Kudos on Q4 and 2008. But the share price is still down more than 60% from their 52 week high AFTER the 8.5% rise the other day. The problem with serial acquisitors in the midst of a recession/depression is servicing the debt load they also acquired, as sales and profitablity take an inevitable hit.
Kudos on Q4 and 2008.
But the share price is still down more than 60% from their 52 week high AFTER the 8.5% rise the other day.

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