RE:RE:RE:RE:RE:RE:RE:Poor top and bottom-line with low and shirking margins. No, I did not listen to the conference call. I just looked at the key financials. While the stock market is forward-looking, the financials show the past but they still show the trend and the true financial health of the company which is crucial information on which one can form an opinion. If you look at financials close enough you can find the red flags and the potential risks and challenges
This company had serious issues with revenue and margin decline. They have solved the revenue issue by buying revenues. their annual revenues will cross $100 m. That comes with a price. Some medium and most large companies in the sector are taking this shortcut approach to increase revenues and market share. . Nothing creative or special about it.
About two quarters ago the company took a charge of $10 m and sold the inventory at a loss because they claimed that they could buy it cheaper and improve the margins. So far no improvement in margins has taken place. Managements make claims and then give excuses why the objectives weren't achieved.
Conference calls can be informative but some are full of management spins. For this company, I want to see margin improvement. and COST CUTTING. Based on the current margins and new acquisitions the burn rate in the next quarter will further increase. Don't see this company turning a profit soon.
I have no problem with others finding holes and calling me out on my views. The future is unknown and no one really knows what will actually happen. There are too many factors and unknowns. Because I identify the potential shortcoming some on the boards do not want me to post. Most stocks have shortcomings, it is prudent to know about them and be better informed instead of blindly believing in a totally rosy outcome. People who create hype and pump and disregard the challenges usually are not challenged and this board is full of them.