RE:RE:Random thoughts by NukesterThis is a gem of a response from TheSage.
"I believe the capital structure of a company is largely due to a sum of individual decisions that reflect the ownership group."
Nailed it.
You can get into WACC formulas and recommended net debt to equity, and GH's targeted debt to EBITDA ratio. Let's not.
Nukester's query comes from a good place.
He senses GH being conservative vs peers.
Yup, they are.
Good or bad?
Sage said it best, we are looking at the "sum of individual decisions that reflect the ownership group."
More going on here than what the balance sheet says.
Maybe 3 generations of successful business people, and their collective experiences, shaping today's capital allocation of Gamehost Inc post-GFC and post-Pandemic.
We've shoveled a lot of manure the last 20yrs. We are still standing; I would argue, standing STRONG as of 2024.
Look around. Nobody is left on the stock exchange these days, just GH.
This is GH 2.0................................
New GH, post-Pandemic.
The pandemic only made GH stronger, smarter, ready for future battles that may arise.
Where'd indsutry peers go?
Privatized, captured by deep pockets.
Why?
Fear.
Why fear?
Because, when you overleverage into any venture, and you neglect to prepare for tough times, then it's inevitable that tough times put a steel toe boot on your neck.
When you can't breathe, then you exit.
Ask the guys wearing the boots............................
Apollo & Catalyst Capital Group & ONEX.
Recessions happen.
We are in one right now. Only question now is if this recession becomes a depression.
That's why you see BoC taking emergency response, larger cuts.
BoC is currently in panic mode.
They mucked up during the Pandemic, with 0.25% overnight rates.
BoC then overshoots with rate hikes, now they overshoot again with rate reductions.
A bad smell.
Going to get worse.
How bad..................... let's find out the next 24mo.
Better to be wearing boots during recession than fancy Italian dress shoes.
Takes a few decades to figure that out.
Good stuff happens when you're a recession survivor.
Hurry up and wait.