KHC and LPL’s debt relative to their market cap, we’ve talked about many times on the site but since you’re newer, you probably hadn’t seen any of those. In the end, both stocks should be fine because they’re trending higher. But we just try to be as picky as possible when applying new capital.
When we entered them, their market cap to debt ratio was better. They took some pretty big declines stock price wise and their debt to market cap ratio wasn’t as good.
Fundamentals rarely change all that much in the time frame in which we hold them. But if it does, it would happen to our oldest positions.