FormerXBC Inc XEBEQ

What the F is he talking about???

[tamaracktop]

Ferret wrote:

"For a company this size I think they've taken on way more than they can chew. It will take a lot of capital to integrate all their takeovers  to set up  servicing of their products sold, which seem fairly spread out all over the map.

I think their working capital ratios will come in at close to 1:1 this q so will most likely need a fair sized capital injection, most likely an equity raise which would most likely be fugly. They will need to get to a critical mass where production and sales fully support their growth and I don't see them anywhere close to that anytime soon. There is a chance they could fail before they get there without a partner with deep pockets or being taken out."

Just how ridiculous is that?

Firstly, why does he think Xebec has an Industrial Products and Services division??
This division doesn't cost money, it makes money.
Every acquisition Xebec has made of service companies has been both ebitda positive and accretive. 
This is an integral part of Xebec's business plan.
Kurt has stressed this repeatedly as separating Xebec from the competition.
Xebec will not only sell the customer the equipment, it will service it as well.

The second premise of this post is completely laughable.
The only possible way for Xebec's current ratio to drop to 1:1 when the Q4 financials are released is for Xebec to have somehow lost $71.23 million in current assets in the fourth quarter, or to have gained $71.23 in current liabilities, or a combination of the two.

Hmmm.
Ferret either can't read  financial statements, or doesn't know what he's talking about,
or a combination of the two.