GREY:CHALF - Post by User
Post by
TheCanadianDudeon Jan 19, 2022 2:39pm
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Post# 34334056
Cash Flow and accumulating Debt: End of road @ Chalice
Cash Flow and accumulating Debt: End of road @ ChaliceCash Flow and accumulating Debt Problems at Chalice The constant lack of cash for operations is clearly a sign that things are going very wrong. All businesses suffer periodic dips where operating cash is tight. However, if cash flow is continually a problem to inhibit proper operation and causes increased borrowing (debt) over numerous quarters including the two recent ones (2021), this business is likely in trouble. If a business is continually spending more than it earns, buying other questionable businesses using more debt, unless it is deliberate and well-funded (obviously not the case here) it will lead to problems. If money is coming in, but there is never enough to pay the bills or debt, this is an indication that Chalice needs to address this problem immediately before a hostile takeover or receivership. Causes might be (but not limited to)
- Excessive overhead costs and management hefty salaries
- Heavy debt loads and high-interest payments
- Poor spending decisions
- Poor and Clueless Management & Board Of Directors
- Company concentrating on selling shares via pumpers instead of selling products