Year end results out2023 year end results are out and they are only a fraction of what I expected. Not particularly good!
Sales the same as last year basically with just an okay future outlook, at best for 2024.
Profit levels remain very low with a gross profit of just 7%, with some lower competitive price adjustments made. Even if you sell tons, that does not allow you enough to cover any mistakes or bad debts (which they have).
It is very tough when you pay almost $4,000,000 in interest a year on borrowed money to stock your 25 warehouses with product, all that in a super competitive marketplace.
Plus, you carry $25,000,000 in accounts receiveable.
I am withdrawing my healthy forecast and lowering my target BUY price (if you still want to play) to only $0.24, which is still a PE ratio of eight going forward.
Sorry for my miscall.
Angles.