KGIC Inc LGLTF

CASH AND CASH EQUIVALENTS

[schoolboy]

I continually hear about them stiffing suppliers. As of March 2016, their Cash and Cash Equivalents slipped to $220,611 from March 2015's $5,747,019. They are losing a million a month. It will be interesting to see how July - the busiest month - plays out, with suppliers either demanding cash in advance, or flat-out refusing to deal with them. I predict a fiasco that will make last year's strike look insignificant.

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[schoolboy]

By "suppliers", I mean landlords, the companies that provide sightseeing activities, and the families that provide homestay accommodation for the students.

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[schoolboy]

Some landlords are flexible. Agents aren't. If LRN reduces commission rates, agents will just shift to any of the hundreds of other schools, all of which are less risky. They are burning through more than $30k a month in interest. It's going to be a rough summer.

[banx]

Schoolboy, you've been calling for demise for a long time. Well the co. is still around. Economic rationalization is a part of business and sometimes lower level individuals can't see the big pic. Big Mac sees it and is making necessary moves. The changes REQ'D here are not instantaneous but borne out over time. Insiders believe and BMO seemingly does too. Hang in there schoolboy.

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[60606060]

I agree 100%. I stated this a year ago after  reading the financial statement. 10%-15% is plenty. Students will come quickly to a school with lower rates. You deserve 5 stars -Banx evaluates his own posts.