OTCPK:MGMXD - Post by User
Post by
materialsgirlon Aug 16, 2016 12:01am
261 Views
Post# 25144693
The final curtain
The final curtainNot quite yet but we are getting close.
AXY management people, according to themselves, are wonderful. They deliver everything on time and on budget and they tell great stories. Reality does not support the optimism as for 25 quarters, with one exception maybe, results have been horrible. Profit or anything close to it is nowhere to be found.
AXY is absolutely complying with accounting standards
Bad financial results, are masqueraded by putting lots of lipstick on a pig.
By camouflaging revenue, as Sales for majority owned properties and as an equity interest in others it is hard for an investor to see how bad things are. More lipstick is put on the pig by mixing in lots of currency pluses and minuses. Mix in several one-time items all over the place and investors get bored trying to figure out how bad it is.
The company is a great breeding ground for story tellers. Unlike Trump, another infrastructure guy, the AXY storytellers are truthful in what they say. My concern is about what they do not say. They never promised us a rose garden. They never promised us a profit.
With nearly a 50% increase in production since 6 months ago the market is giving them one more chance. But analysts are deeply embarrassed after a long stretch of being wrong.
The market is now taking a slightly positive wait and see approach. If Q3 and Q4 results continue to be as dreadful as the previous 25 Quarters I expect that analysts and investors will bolt.
We hope that this will not happen but we cannot be confident.
Selling out to better business managers is the way to go
mat
M