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TK Junk Mail
Go ahead, make my day
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join:2002-03-03
Margate City, NJ
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| reply to MASantangelo
Re: Curious...
said by MASantangelo  :Seems like a perfectly reasonable thing to do if I were a money-grubbing ISP. Ah, the demand that ISPs don't make a reasonable profit. Of course, to some, any company that actually makes money is by definition "money grubbing".
Check out their income statements:
»finance.yahoo.com/q/is?s=EQ&annual
They are only making 14%, 12.3%, & 10.6% the last 3 years. Just enough to keep investors interested enough in their company to fund capital improvements.
Income last 3 years
683,000,000 784,000,000 878,000,000
Capital expenditures last 3 years
829,000,000 923,000,000 828,000,000
So the last 2 years they actually had to borrow money to fund improvements. Sure doesn't sound like a money grubbing operation to me. But I am sure it does to those who think they should get everything for free and other people should invest and not get a return(except for themselves of course).
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| said by TK Junk Mail :said by MASantangelo :Seems like a perfectly reasonable thing to do if I were a money-grubbing ISP. Ah, the demand that ISPs don't make a reasonable profit. Of course, to some, any company that actually makes money is by definition "money grubbing". When I pay them to ship my bits across the Internet, and they betray my best interests by reselling my data to a third party, that's money-grubbing.
Check out their income statements: » finance.yahoo.com/q/is?s=EQ&annualThey are only making 14%, 12.3%, & 10.6% the last 3 years. Just enough to keep investors interested enough in their company to fund capital improvements.
Like it or not, Broadband is a commodity. It's not the place to invest if you want 20%+ growth. It's slower and more assured, like a utility.
Also, Investors don't fund capital improvements. Investors authorize the seeking of new funding or fire boards of directors. But Investors are investors because they have already invested. What they then want to see is return on their investment either in increased stock prices or dividends.
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Robb Topolski -= funchords.com =- Hillsboro, Oregon
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TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
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·Comcast
| said by funchords :Also, Investors don't fund capital improvements. Investors authorize the seeking of new funding or fire boards of directors. Of course they do. Thru new stock offerings and reinvestment of money that could have gone for bigger dividends is reinvesting by the shareholders. Borrowing is mostly used to fund improvements, but that isn't the only way.
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| reply to TK Junk Mail
said by TK Junk Mail :said by MASantangelo :Seems like a perfectly reasonable thing to do if I were a money-grubbing ISP. Check out their income statements: » finance.yahoo.com/q/is?s=EQ&annualThey are only making 14%, 12.3%, & 10.6% the last 3 years. Just enough to keep investors interested enough in their company to fund capital improvements. Income last 3 years 683,000,000 784,000,000 878,000,000 Capital expenditures last 3 years 829,000,000 923,000,000 828,000,000 So the last 2 years they actually had to borrow money to fund improvements. You forget cash flow, which funds infrastructure (pays all the bills then some is great cash flow). The OCF is $1.74 billion. Their EBITA is $2.67 billion. Their operating margin is nearly 26%. I'd say Emarq has become a nice little investment. The only have $5.67 billion in debt as well. Cash Flow is always a key number. Their book value is $29.98 billion. And, their dividend number would make some companies drool.
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Ian
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join:2002-06-18
| reply to TK Junk Mail
said by TK Junk Mail :So the last 2 years they actually had to borrow money to fund improvements. Sure doesn't sound like a money grubbing operation to me. But I am sure it does to those who think they should get everything for free and other people should invest and not get a return(except for themselves of course). A company needing to borrow money, particularly a young one, to fund improvements is hardly unusual. And making 10-15% NET profit, even after paying interest on that debt is financial performance to envy.
Which is not to say that I'd buy Embarq stock. Their entire sleazy business model is under a microscope now. That enviable revenue figure could plummet by 50% or more in short order should they be required to need an opt in and the debt would soon bankrupt them.
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