No. of Recommendations: 2
The stock has limited room for growth and a high debt level. Before I would consider a stock purchase, I would look very hard at the debt levels, maturities, ability to refi at decent interest rates, etc.. It is much better to buy a good to great business at a good price than to buy a stagnant business with no moat and limited growth prospects at a great price.
The debt level will stop them from any acquisitions. What else can they do? They own older low growth brands.
Jk
