RE:The fly in the ointment
navajojoe - (11/19/2021 9:46:35 AM)
The fly in the ointment This is something you will never see mentioned by the pumpers here, or on "the other board". It sounds like the payment will be made at the end of the 3-year period, so won't affect the earnings that show up on the books, but it does mean that almost half of our net earnings for the next 3 years will be going to the owners of Global. |
Navajo : Possible. I guess what counts is that we got Global HVAC pretty cheap, even if we have to give them a big chunk of the profits for the first 3 years. Without Global, we would have a fraction of the revenues we now see coming in.
navajojoe - (11/19/2021 9:46:35 AM)
The fly in the ointment This is something you will never see mentioned by the pumpers here, or on "the other board". Whether it is dishonesty, or just plain ignorance, I have no idea.
The Global HVAC acquisition contained this clause;
a vendor performance payment equal to 45% of adjusted 3 years cumulative earnings after-tax in excess of $4.5 million
A little vague, as we don't know if that was supposed to mean "all" of our earnings, or just those attributable to Global. But because Global is being so intertwined with KNR, and there is the $4.5 million not included (KNR's share?), we have to assume it will be all earnings above that level. |
if this doesn't tell you everything you need to know about John Freisen aka Navajo, I don't know what to say.
KNR price down $0.07 - lays doubt on something explicitly stated. 45% of profit over 4,5M
then less than 6 hours later, another positive NR and suddenly HVAC was "pretty cheap"
any newcomers ... just ignore this plug.