RE:RE:RE:50% Return on your money
ando wrote: Hi TorontoJay
My belief is that every morning we get out of bed, life is risky. That said, I believe the deal was done at a .12 valuation. On top of that debt has been taken care of and more is on the chopping block.
In a nut shell, our CEO is a money guy, much like myself so I have the world of trust in him and my $$$.
We are good
IMHO Ando
I personally believe he's being reckless in this environment taking on another acquisition. The balance sheet is very poor and he should be growing organically during this time and improving his working capital.
We know he's made a bad acquisition before and there's no guarantee this one will be a good one. If it turns out to be a bad deal, then I'm afraid the future share price goes down from here.
His company is cheaper than the company he acquired. Given the decline in valuations, it doesn't appear he was given a good discount. In fact, he paid the same multiple as he did in the past.
He's a risk taker but maybe just a little too much.