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AXIA NETMEDIA J T.AXX

"Axia Netmedia Corp owns, operates and sells services over fibre optic communications networks. Its reportable segments are The Covage segment and The North American segment."


TSX:AXX - Post by User

Bullboard Posts
Comment by donmc70on Feb 16, 2004 5:05pm
106 Views
Post# 7066689

RE: Growth Rate Expands

RE: Growth Rate ExpandsCreditors do not decide if all companies survuve. The majority of business entities use credit to compensate for a temporary cash flow problem or to invest in projects that will contribute more to the bottom line. In the case of AXX, revolving lines of credit, loans and private placements are an unending way of life. There has never been a QUARTER that has even been cash flow positive let alone profitable. The ten year contract is of little use if it cannot produce a sustainable profit. As the recent construction fiasco proved, a contract is only of consequence if you are competent enough to complete the project and if the margins are significant enough to do more then merely increase gross revenue. Two years ago the company was within 90 days of profitability. Since then the dilution from 22 to 43 million as well as the sale of all assets has kept this company on life support. By Dec 2002 there was supposed to be another major project announcement. To date, nothing. What ever happened to the Austrailian contract to be announced last Dec? One has to seriously question a management team that thinks a company will be profitable in 90 days and are still losing money over two years later. Either they had no concept of the realities of the financial position at the time or else they had no idea of the future corporate direction. Both scenarios reek of INCOMPETENCE.
Bullboard Posts