I like to keep a close eye on the developments of the auctioneer industry. Sometimes, I come across interesting investment options, like Ritchie Bros. Auctioneers Inc.
). Although I take many aspects into account when I analyze a company, I will focus, in this article, on debt and liabilities, in addition to examining what analysts and other top investors think about this company.
This analysis is crucial to understanding the risks of investing, and will allow us to appreciate how leveraged the auctioneer is, and what kind of returns to expect from a long-term investment after the company reported its earnings last Monday. As the years 2008 and 2009 have taught us, leveraged companies with large amounts of debt can have a devastating impact over your investment. However, by taking a close look into the debt scheme of Auctioneers, we will be able to elucidate if the company is likely to maintain its capital, and use it for future growth. Continue Reading »