Originally Posted by
Normal Pilot
I don't think governments always bailout healthy companies do they, they wouldn't be bailing it out if it was healthy. Healthy companies have cash reserves to cater for the unthinkable.
Quick look at TUI AG's books and they were forecasting a net profit of approximately £500 million, however they have a net debt of over 5 BILLION, so basically they have zero cash in in the bank, hence the reason for needing bailing out.
TUI AG is certainly not a company I would put any cash into.
Because of the low interest environment that has been around since 2008 I think you’ll struggle to find any big multinational businesses that hasn’t taken advantage of debt and low interest rates. Which with the Federal Reserve and the Bank of England have just got even lower.