I was surprised to hear about the lackof bill payments from AADCO.
I follow this board, and everything sounds just hunky dory. Except for Newmans post about shares for debt/and the 2 delinquent filings.
I have been concidering an investment in this company because I like the industry and know quite a bit about it.
The other day AADCO came up in conversation with some wrecking friends, who told me (about how bad it is right now in general), they also mentioned garages shutting down all over the place.
I am going to remain on the sidelines for several reasons which are JMHO...
1. Non payment of bills
2. Very limited liquity
3. Going concern a real possibility
4. The stock seems to be manipulated (propped up)
I would rather buy later at 2+$ once I see they can get their act together, and I see if they keep or lose the insurance contracts.
It's not always true
"IF WE BUILD IT THEY WILL COME!!!"
You have to sell 1 heck of a lot of inventory to pay for the overhead.
I think they would have perhaps been better off buying a standard yard, with all of the infrastructure in place.
I do know of other wrecking yards right now which are also 1 step from the grave not even paying their employees.
Wrecking is 1 of the 1st industries to recover after a recession so it looks like this could drag on for a wee bit longer than expected.
No position at present