Swiss Water Decaffeinated Coffee Inc SWSSF

Great year end report

[rustyblades]

I thought the annual report was mostly good news though you would never know it by looking at this morning's share price. It's just as well coffee supplies are tight. With the expansion a year from completion and existing lines running at 80% they wouldn't be able to handle much more product than they are now.

[WDMBell]

The problem is that the improved and increased revenues do not translate to the gross profit, impacting their ability to repay all the debt that was required for the second line. If increased revenues don't translate to improved earnings it's hard to see where they company will really go. In the 2018 annual report the earnings where much more robust as the total debt to equity was around

[undervalue]

Swiss water is the definition of the dog ate my homework company. I held for years and bailed when all the cap ex plans were announced. No matter what the sales were, nothing floated out as significant margins. It was whack a mole. One thing solved, another popped up. 2 steps forward, 2.5 steps back Now, there is way more cap tied up, way more debt and the risk is higher. Great product, not so

[WDMBell]

I agree 100% and dumped as well.  Too bad as there is a lot of potential there but the years of handing out too high of dividends has caught up with them.  They didn't plan for the future and here they are, tremendous market opportunity yet they can't really exploit it as they are not set up for it overall.

[prophetoffact]

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[Capharnaum]

I agree with you. I like the business, and they should be able to grow revenue eventually when they build extra capacity. Unfortunately, right now, their net cashflows are low and they need money to build out that capacity, which will increase the interests paid or dilute the current shareholders. In both cases, this increases the risk for shareholders. I'm still following the company, but

[winnerswing]

With coffee prices that surged through the roof recently, it is not surprising to witness those tiny margins. I'm confident margins will improve when coffee will return to prices around 1$/pound.

[Lisagerrard17]

[Joe455]

Lots of upside from here.