Post by
Captain71 on Dec 16, 2022 9:56am
Tide may soon turn
Do most agree that inflation concerns weigh harder on this type of company than the effects of a mild recession?
Many are feeling that inflation has peaked or soon will, so that is baked in to the SP.
Correct me if I’m missing something but a mild recession should not have a major impact on STC’s business as customers should not be cancelling orders or services due to slightly negative GDP growth.
More importantly, the potential for cheaper supply costs now may have a positive effect on SP as financials are expected to improve.
Bottom line: With the absence of another market shock I think we start slowly trending higher here soon with anticipation of improved financials.
Of course I may be wrong!!!
GLTA
Comment by
Steve33 on Dec 16, 2022 10:10am
I have looked at this company and like what I see. The only thing that bothers me is 8 million cash on hand. Not to big of a deal but it is still losing money. I will probably buy soon. I believe if they can show a quarter with any amount of earnings this will pop nicely. It might even go up a bit with a January bounce.
Comment by
Steve33 on Dec 16, 2022 10:13am
Forgot to mention I like NVEI as well. Not quite sure to buy that or this one. I would like to buy both as well as others. Can anyone lend me some money, lol
Comment by
Torontojay on Dec 16, 2022 12:45pm
I have some Ftx money I can lend you :)
Comment by
Tan4646 on Dec 16, 2022 10:27am
On the positive side, last qtr saw positive operating cash flow,..
Comment by
Stonksonlyup90 on Dec 21, 2022 2:30pm
Company is projecting to generate $196M USD in Gross Profit for the next Fiscal Year (70% GP on $280M USD of revenues).. cash flow is not an issue, there are lots of levers to pull on the SG&A front that will flow down to the bottom line/cash flow.
Comment by
masfortuna on Dec 21, 2022 6:16pm
Yup. It's 3 years I have been witng for this revenue to "flow down" as you put it. It's trading at .75 pre-split...