RE: BMN zero debt6 Nov 2018 08:01
It’s just scanning companies with no debt and applying finance 101, ‘some mix of equity and debt financing brings WACC to its optimal level, therefore add debt’. No debt is not necessarily better, if there’s a requirement to raise capital. BMN aren’t in a position where they need to raise debt, so there’s no reason they should (other than perhaps the historically favourable credit market conditions). What simplewallst have offered up isn’t analysis.