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Re: CharlesNet post# 14269

Thursday, 10/27/2011 1:54:02 PM

Thursday, October 27, 2011 1:54:02 PM

Post# of 17088
That is true. The only problem is price to sales doesnt take into account debt. The main companies you mentioned have debt vs revenue of:

CMCSA $39B on $45.67B in rev (.85)
CVC $10.8B on 7.52B in rev (1.43)
CHTR $12.69B on $7.11 in rev (1.78) (post bankruptcy debt)

Using that range, on the $3m in rev, WNRC would have to have between $2.5M-$5.3 in debt. We are nowhere even close to that.

Dan has consistently stated that he could grow at a much faster rate if he were to use debt to acquire systems. The decision was made to keep the balance sheet lean even if that meant growing at a "slower" pace.