Should You Avoid These 7 Debt-Laden Companies?
Some sectors come with a predisposition to debt. Railroads, utilities, shipping, and oil exploration, to name a few, all represent sectors that have little choice but to dip into debt to purchase the infrastructure needed to grow their businesses. But some companies leave you scratching your head, wondering if that mountain of debt on their balance sheet is sustainable or eventually a deal breaker.
Below I've highlighted seven companies that exhibit significantly higher than normal debt-to-equity ratios either in relation to their peers or to the market in general. Some of these companies do indeed have bright futures, while others may be on the downswing of their existence as a publically traded company. While I can't tell you whether you should buy or sell these companies, I can hopefully spark some interest in these companies for future research.... Read more