RE:$1.60 as called.caillen wrote: So...here's the thing...financials are suspect. Negative equity. Revenues are written off (not conventional to say the least) and debt is inconsistent for the last four quarters. I would question everything if they weren't with KPMG. I suspect most of it covers intracompany loans which floats but creates layers through which no one can navigate. Institutions will not touch this and hence the lack of interest. And...charts are not cooperating in that both MACD and PMO just crossed negatively which is long bearish even though I don't see that much more downside fundamentally but charts are saying differently and charts generally don't cheat. Where to now? I would say we are at par and not the low...so down until the 28th (last day of tax loss selling) and then back up steadily to earnings. A nice play for 50% to 80% assuming more downside within the next two weeks. Good luck.
Hmm.. maybe stick with the momentum trading. Seems to be your thing. Everything you say from a financial perspective is pretty boneheaded. Not sure if that's on purpose or not.
Negative equity: Again with this. Amazon has a P/B of 150:1. IBI has a negative P/B. Either way your investment isn't backed up by asset value and you get wiped out in a liquidation. For a closer comparable: Stantec has $3B market cap and $1B of equity value, but over $800M of that is goodwill/intangible.
If IBI earns $30M next year, their book value will still be negative. Do you think the shares would still be cheap? The *only* thing that matters for IBI is cash generation and improving collections. Can they generate enough cash to get out of their debt trap? I think so, though it is far from certain.
Speaking of debt: You can look at the financials if you're confused. Perfectly consistent and not complicated. Or maybe you just look at the financials on Google/Yahoo, in which case the numbers seem very strange indeed.