A strong cash position business like that is effectively a finance sort of business, in other words, exactly the kind well positioned to go conduct an LBO.
> A strong cash position business like that is effectively a finance sort of business
You are conflating companies that make a lot of cash (and therefore can afford debt service) to a company that has limited cash flow, but has a large pile of cash.
The shareholders would be best served by a special dividend of the cash. Management has shown zero ability to grow a business.
In this case, the shareholders don't want a special dividend and prefer to own a company that has a strong cash position. There is nothing at all wrong with shareholders choosing that.
There are plenty of other stocks to invest in if one wants a highly-leveraged company that is trying to grow really fast.
You are conflating companies that make a lot of cash (and therefore can afford debt service) to a company that has limited cash flow, but has a large pile of cash.
The shareholders would be best served by a special dividend of the cash. Management has shown zero ability to grow a business.