At a time when many US companies are facing a slowdown, investors must keep an eye on how company ma...
At a time when many US companies are facing a slowdown, investors must keep an eye on how company managements are reacting. Shareholder friendly managements will deploy the company's cashflow in investments or acquisitions that add to shareholder value. For example, complex metal product manufacturer Precision Castparts has demonstrated it can repeatedly use its cashflows and balance sheet to make acquisitions that enhance shareholder value. In August 2005, Precision Castparts announced it was spending $540m (£282.9m) to acquire Special Metals Corporation, a producer of higher performa...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
