Seriously guys,

I am a long term investor, and i dont think that BSTEAD is a good stock to hold for long term, the management team i would rate an ok only due to the average 5 Year ROE of about 12%. The one major thing i dont like about this company is its leverage. Its debts are too high relative to its Equity and assets.

I think this stock is only good for trading purposes (the volatility is not that high too) but i would strongly advise not to buy this stock if you are a long term investor. Hope this is helpful to some of you guys out there.

I would like to take backwhat i have said earlier....its actually quite an ok stock....dividend ok, ROE ok, price trading below NTA (also ok), the only thing i dont like about this stock is its leverage. Even with the rights issue, its leveraged is too high for my liking. if i remember correctly, their current ratio is about 0.5 or lower (might be wrong, have to double check) which means that they only have about 50cents to service every dollar of their short term debts.

Companies with lots of loans doesnt really mean that its a bad company, and companies with no loans doesnt mean that its a good company either. Its preferance of individual investors. As for me, i like companies with little debts, possibility of bankruptcy is much lesser than those with lots of debts.

Overall, i would rate bstead as a moderate stock...solely due to the fact of its leverage. The rest of the ratios are fine....

P.S. it might turn out to be a good investment...(just like BJTOTO, i dont like the stock because there is no net assets inside the company at all, but its doing well)

Reasons why i dont like companies with lots of debts because once they are in need of cash urgently, they need to borrow from banks, and banks nowadays (due to the credit crunch) insist alot from companies, e.g. Titan took loan from a bank (i forgot which bank already) and the banks didnt allow Titan to pay dividend for 2 years (again, if i remember correctly) orsomething like that.