still accumulatingi treat this one as part of my contra the heard like portfolio. Along with ICS and a couple of other juniors. Management made some incredibly boneheaded decisions that put the company at risk. Seriously what company with millions in revenues finances equipment at the stupid rates they did? One that gets caught with their pants down.
so now we are on the right side of the curve, management did not have the flexibility to make more stupid decisions so they had to curtail some of their expansion plans. The stress they went through with the 2008 meltdown probably means they have learned their lesson about balance sheets and financial flexibility. We should be in a position of falling debt, better balance sheets and increasing margins as they are able to quote higher prices in the current busy environment.
We will have a lifetime discount on this company because anyone with a little charting software will see how close they came to disappearing. That being said, as the debt disappears, equipment is paid off and cash begins to accumulate on the balance sheet I think this company may be able to get up to a multiple of 5 times earnings plus cash once they have 3 more quarters of positive earnings.
watch for the spring quarter, if they can get through that one without a loss, we will know they figured out how to run their own business.
heres hoping for a 5 bagger or better.