OTCPK:EDUHF - Post by User
Comment by
jbsbillon May 02, 2012 10:55am
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Post# 19861213
RE: Profits are nowhere insight!
RE: Profits are nowhere insight! A couple of comments.
1. IFRS penalizes companies that are growing by acquisition by making them expense acquisition costs. Makes EDU look bad, when it's executing on its strategy.
2. A lot of what they're buying is real estate, which depreciates on the books while appreciating in the real world. That's why they're using the FFO concept for cash flow.
3. You're looking at the past, fattail. The acquisitions they have just made have not hit the income statement yet. When they do, everything will be looking good because G&A costs will not increase nearly as fast as the revenue and gross profit from the new acquisitions.