STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

RE:RE:RE:RE:You make some good points ...

[goldsternp]

Depends on  share count used . For the year, basic shares would be 15% and diluted shares  would be 18% increase in equity.

You are correct that equity has decreased over the past years.  It now equals 50% of share price while for AAPL it is 5% of share price. That's a big difference in favor of STB.

I  suspect the company is still using a large number of fully depreciated buses which generate cash flow. Depreciation shelters earnings from taxes but at the same time reduces stockholders equity. Overly generous depreciation  improves cash flow but makes the equity numbers look poor.

The company has never denied that they finance growth externally and they have repeatedly stated that economies of scale will benefit the exisiting shareholders while the new business will compensate for the dilution,  if equity or pay for the debt if debt. I acknowledge that the economies of scale benefits haven't materialized yet, but tht doesn't mean that they won't in the future.    

I find it hard to believe that a share price swing up 2% in one day and down 3% the next is in any way related to the intrinsic value of the company.

One blogger questions  Denis Gallagher's competence because he looks like Donald Trump.  Would he be happier with Maddoff  running the business as he looks like a business man or would he prefer the smooth talking Harvard Business School type ?

By the way, I am Jewish and MIT.