RE:RE:Q3 resultsthe cons:
166,000 free cash flow. That mean they need 2.5 years to have over 1.5 millions. So at this rate 2.5 years to invest in 1 new company. The cash flow is just bullshit when you don't generate enough money to reinvest.
They have invested 68 millions in total and the assets is currently at 42 millions. From this number 7 comanies are not paying any royalty because they are in a bad financial situation. so 7 X 1.5 million = 10.5 millions to write off. They have invested 68 millions and they end up with 32 millions in assets. And they wonder why the share price is so low???? They have lost half of their working capital.
ohh and I love how they change subject lol
"
The change in the quarterly period was due to no royalty payment income recognized in Q3 2017 from seven investees that have failed to pay royalties for at least three months compared to $810,000 of income recognized from this group in the same period last year. Management believes that the core companies from its portfolio will continue to contribute Free Cash Flow(1) on a regular basis as the portfolio matures."
the good:
They have slashed in the expenses which is a very good thing.
If they invest the 8 million with an averge return of 200 000$ in royalty they can increase the royalty income from 1 million to 2 million. That will put the company in a better financial situation assuming the companies don't go bankruptcy like the seven current company.