Cameo Industries Corp - Ordinary Shares CRUUF

LOW TO NO DEBT CRU ARTICLE!!!!

[benzo40]

Cameo Resources Corp (TSXV:CRU): Does Low Debt-Load Make It A Financially Strong Company? Small-cap companies such as Cameo Resources Corp (TSXV:CRU) with its market cap of USD $2 Million, have high growth potential but financial strength is the deciding factor in their long-term survival. On the surface, companies with a debt-to-equity ratio of less than 20% appear to have a sound debt structure, as is the case with CRU. But it is important you also look at other financial strength metrics to have the complete picture, like are they resilient enough to face an economic or industry downturn? Primarily due to the lack of diversification in revenues geographically, often investors opt for a bundle of small-caps. While savvy investors arent wrong in looking for singular blockbuster opportunities and trying to achieve diversification on their own by allocating a small part of their portfolio capital to small-caps, that doesnt make these investments less risky individually. However, to help you reduce that risk, Im going to provide you with few basic aspects other than debt-to-equity ratio to gauge a ballpark estimate on how financially strong is the company.