Cantor FitzgeraldI am familiar with the manufacturing business. When Fernades says that business is good, you tend to ramp up your cost of goods sold (materials etc).....when things are slow....it reverses. So the Cantor guy makes this statement:
Cash flow from operations was (.4) million. A major contributor to the cash flow outflow was (10.7) million impact from building inventory. We view this sharp increase as an indication of the expected revenue growth in coming quarters.
To me, things are moving ahead nicely.....yet this analyst downgrades the price....lets put it in simplistic form...growth increased, inventory is building for growth, margins are good...nothing has changed.....analyst drops price from $38 dollars to 32 dollars.
I have said in the past , we should have fired the guy that wrote the PR news release from Avigilon. If nothing has changed....and the numbers were decent.....this analyst has no idea what he is talking about and I feel sorry for the clients that are with his firm that will read this report.
IMHO
GLTA
A major contributor to the cash outflow was
the $(1
0.7) million impact from building
inventory.
We view this sharp increase as an
indication of the expected revenue growth in
coming quarters.