Monday, September 3, 2012

3 Profit-Generating Basic Materials Stocks That Can Keep Down The Debt


In the capital-intensive sector of basic materials, it's easy for companies to amass debt in pursuit of growth. But the companies who grow in value over time are those that can continually turn a profit, while keeping down debt. With these ideas in mind, we searched today for basic material stocks with these two key attributes: profitability and low debt. The combination of these traits point to a company with strong financial controls and oversight, which we consider necessary traits for a smart investment. We came up with short but intriguing list of basic materials stocks for you to consider.The Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with
... Read the rest at SeekingAlpha.com

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