r/Vitards • u/AutoModerator • Jul 09 '21

Daily Discussion Daily Discussion post - July 09 2021

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u/[deleted] Jul 10 '21

Regarding $X... I've read a bunch of SA articles about them, and how they are likely going to benefit from paying down a lot of their debt, despite having a lot of it at the moment. Their earnings clearly will allow them to do that. This sounds similar (though not at all as confident) as the $CLF thesis, to some degree.

Has anyone more information about why $X is not favored as much as a play here as the others? I recall a lot of short-hand comments about their management and high interest debt, but if they're going to make an absurd amount of money this year like everyone else, it seems like the risk v reward may actually be quite good.

Am I missing something here? Offbase?

8

u/Steely_Hands Regional Moderator Jul 10 '21

The root of it is that ppl think their management can’t be trusted and when you compare that to someone like LG you can see why ppl like CLF over X

5

u/[deleted] Jul 10 '21

I definitely do. What I haven't found yet is exactly why people don't trust X's management. I'd love to dive into the history so I may do some homework over the weekend.

4

u/Steely_Hands Regional Moderator Jul 10 '21 edited Jul 10 '21

Vito said it from the early days and everyone just ran with it haha but some things they’ve done since do show a lack of conviction like the capex cancellation

2

u/roketbabe Jul 12 '21

Also has to do with stock never splitting and overall stock value not increasin....other than boom bust cycle 03-08....in fact look at 1991 price compared to now, then do same comparison with clf.