RE:RE:RE:Could Easily Raise DividendYour first point is correct.
They have access to a LOC should business growth demand its use.
As it is, adding $10 million in cash to current loan receivables is quite a solid growth rate which will internally fund continueing growth through excess cash flows.
And, I must admit, your second point is also correct.
Using their excess cash to fund more loan receivables will not significantly increase operating expenses and certainly not 60 % as I mistakenly used.
So my estimate of operating earnings if excess cash is used to grow the loan portfolio is not correct.
Your estimate of $3 million would be much closer to the truth.
Which makes this investment all that better..