RE:RE:RE:RE:RE:RE:RE:RE:RE:If..Torontojay wrote: The company is cash flow positive and
this is all that matters. In fact, cash flow has been increasing each year up until 2021 which is trailing 2020 numbers only. Adjusted ebitda over the last 12 months is still above $1m which is ahead of 2019 numbers and previous years.
Do you realize that companies right off their intangible expenses to reduce taxes? This makes the company appear to be unprofitable. If you've ever run a business you'd realize that cash flow is more important than "accounting" net profit. Acquiring companies is a clever way to reduce your tax bill since you're able to amortize the intangible expenses that comes with it.
Don't worry, I'm well aware what cashflow positive means. "This is all that matters"?!? Nahhh, not at all... Net profit is a way to build equity for a company and create value to shareholders!! And what the Financials tell me is that they're not doing enough profit to cover the amortization & interest expenses related to their acquisitions so we could conclude that for now, they're not really good moves....
And BTW, 2020 was a cashflow positive one but if you take a look at the Financials, it was b/c in big part they issued new stocks of $3.2M so more dilution for each shareholders and not really positive for now...
And IMO I would rather pay thousands dollars by making profits that only being satisfied by postivie EBITDA and no profit!!! So BOTH postive EBITDA, cashflow positive and even more net profit are important for me!! Everybody run a business his way, I'll keep mine.....