Thoughts on Ericsson


I’m invested in Ericsson, suddenly it turned into non-compliant.
Anyone knows the criterion for which the stock turned into non-compliance zone?


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Ericsson market cap has dropped as its stock dropped. As a result , debt as % of market cap is now over 30%. I believe that’s the main reason

It could also be that debt itself has increased.

Given volatile markets, It would seem prudent to consider annual average market cap vs a point in time market cap ( date of balance sheet ) . I think Zoya may offer Options to users in future to use annual avg market cap

This level of compliance is quite difficult. One resource is to stick to companies well under 30% debt as % of market cap

Good luck.