Arrium: We told you so

Intelligent Investor

Independent Financial Research

There are few things worse than some smart alec saying ‘I told you so’. But when it comes to Arrium’s (ASX: ARI) fall into administration last week, Intelligent Investor did indeed tell you so. We told you generally, with blog pieces such as Avoid losing money with this one ratio. Arrium’s net debt to market capitalisation ratio at the beginning of 2016 – three months before it collapsed – was 12 times. We also told you specifically. Intelligent Investor only covered Arrium – formerly OneSteel – sporadically over the years, but our distaste for the business was clear every single time. Most recently, colleague Gaurav Sodhi responded to a member query on Arrium’s apparently cheap price-earnings ratio of 3.3 at the time by calling it a ‘classic value trap’. That was in September 2014. Read full article here:(VIEW LINK)


Intelligent Investor
Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...

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