TSXV:MRS.H - Post by User
Comment by
Snowdrifton Sep 15, 2020 3:38pm
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Post# 31561520
RE:Contract $ 329,000,000 at 4% margin: 13,160,000 gross profit
RE:Contract $ 329,000,000 at 4% margin: 13,160,000 gross profitIt looks to me like you're shorting this stock and you're petrified of how high it's going to go.
Hiddensecrets wrote: From this gross profit of $ 13,160,000 you have to take off some financing costs say 20% of it so amount of gross profit after financing is: $ 10,528,000. Then you have to account for salaries and general administrative expenses so net profit may be minimal.
So while contract is big, the issue remains with MARGINS MARGINS MARGINS....and financing costs.
This is my PERSONAL OPINION ONLY.
Other contingent: contract is worth $ 329,000,000 however actual buying might be alot less.
Good Luck,