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Debt hurts your fundamentals and hurts your stock price. Cash helps your stock price. If you're concerned about stock price, sell for cash.
by astrodust 7y ago
Debt hurts your fundamentals and hurts your stock price. Cash helps your stock price.
If you're concerned about stock price, sell for cash.
- gingabriska 7y agoIt depend on how you use the debt. If are able to make slightly less ROI (due to cost of capital, cost of servicing debt) at larger scale, it's worth having debt and will have positive effect on stock price. The relationship is not as simple as you claim.
- bduerst 7y agoTrue, but we're not talking about an anonymous company in a vaccuum here, but Tesla, which already has plenty of debt.