RE:RE:RE:RE:RE:Not as painfulSorry Gentleman. I should have been more precise. With the debt to EBITDA high, announcing a dividend increase opposed to paying down debt, is unwise. By doing so they are further from growing through acquisition.... their only revenue growth strategy....
Cashflow is awful, so they will borrow to cover dividend though technically it comes from profits. To me cashflow ( P/CF ) is the real canary in the mine. Too many companies look good on paper booking profits. Only their cashflow warns you something is up.
HLF is in no immediate danger. But they are not going forward. So when you have nothing left to propel you forward, where do you go? They already did their cost cutting program. Their only salvation is getting their debt ratio back below 4 so they can acquire something else.
In these situations shorts start wandering in and push it down.
But hey. It could be worse. You could own CLR.