RE:RE:Latest rant hell no, I am not lightening up. The new partnerships will bring in thousands of small business borrowers who do not need logistics services which will make the distortions smaller over time. But right now I think many investors are skeptical because revenue growth to date is profitless.
bmo1212 wrote: I can understand your concern, looks like they are dressing up the results with a little bit of blurring of the numbers, which is very common in small companies.
Are you going to lighten up on your holdings as a result?
Chers
lscfa wrote: I don’t like the way the financials are being reported. It seems like a distortion from reality.
The supply chain segment includes revenues from logistics services and loan matching fees from logistics customers. This is offset by logistics costs. To date, the gross margin in this segment is near zero because the logistics services are being outsourced and Peak has forgone the loan matching fees for now. Peak says the gross margins will increase to 30% when some of the logistics services are no longer outsourced but trucking and warehousing can not be done in-house. So will the improvement in gross margin really be just the inclusion of loan matching fees? If so, then be transparent and state that logistics services are a zero margin business offered to customers to entice them to use the loan matching service. Get rid of the supply chain segment reporting and simply report logistics revenues/costs (gross margin near zero) and include any loan matching fees from logistics customers in the loan matching fees segment.