YE Results | Cash burn | PAA shipping Q4 | STOP THE DIVIDENDI find the C-COM presss releases of limited use without the full financials be attached. I had to go to SEDAR and download the AIF to get the financial statements. For those of you won't bother, here are my thoughts.
I view the legacy C-COM operations as being relatively inconsequential as long as it remains profitable and cash isn't being consumed. The higher margins offset lower revenues so we remained profitable.
The most important item from AIF was the reduction of cash from 18.8M to 14.4M. When you dig into the financial statements a little more, the 4.5M decrease in cash consisted of a 2.1M increase in inventories and a 230k decrease accounts payable. The balance was changes in working capital items.
For me, C-COM should NOT be paying a dividend. This is a growth oriented company (or it should be) and the company should be using its cash to maximize its product development. The company paid 2.1M in dividends pretty consistently when it feels we are scrimping and trying to get grants to offset the development cost of the PAA which IS the future of this company.
Like so many Canadian companies, C-COM is run like a private family run business and this needs to stop. Leslie Klein owns around a 1/3 of the company I think and the dividend disproportionately benefits his person interest.
If C-COM was growing, highly profitable and generating a tremendous amount of cash, the pay the dividend. However, that isn't the case here. We are progressing the PAA product at an unacceptably slow pace.
CUT THE DIVIDEND NOW!!!!! Either spend the cash of moving the PAA product along faster or just preserve / retain the companies cash as well will definitely need this to launch the product soon.
WE ARE THE SHAREHOLDERS, lets use our shares as our voice to make sure the company does what is best for all of us.
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Thanks and always happy to have feedback, comments, ideas etc...