OTCPK:TOUBF - Post by User
Comment by
birchjunkon Jun 08, 2011 6:12am
509 Views
Post# 18685163
Negative cash flows..warning ?
Negative cash flows..warning ?I found this story hard to believe initially.
However, one of MW's allegations seems to hold water.
Which is why TRE does not have positive cash flows and must go to the market periodically for debt financing ( note they just raised $600 million ).
Given high margins, high prices, one would think that TRE's cash position would be growing rapidly, independently of debt credits.
But, it isnt and suspriiously, debt and cash position are very similar.
Each year or quarter, it seems that TRE invests its reported operating cash flows to acquire more assets which then overwhelms the reported cash flows and reduces the cash position, eventually requiring more debt infusion.
The forest acquisitions may be perfectly true and validly priced, but it could also be a cover for balance sheet deceit.
Perhaps others have the same concern about dissappearing cash flows.
It certainly does raise a red flag.