Comment by screamer99on Jul 16, 2024 1:07pm

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Post# 36135015
RE:RE:Stephen Takacsy - BNN - HOLD
RE:RE:Stephen Takacsy - BNN - HOLDThe long term portion of the liability ($70m+) is ticking down, but there's no visibility into the current portion.
What's lacking in the quarterly statements are the full notes you see on the annual statements which show how much they've increased the provision based on new claims, how much they've paid in cash for amount they accrued in the past and how much of the provision increase is due to accretion (time value of money because the provision is recorded at fair value).
They're silent on this for a reason but forced to disclose at year end because the statements are audited. It's their largest liablity next to customer deposits - why wouldn't they have a note in the quarterly statements?
Customer deposits are still $70m, but not nearly that amount in cash. Although some of it may be in inventory, caution regarding financial stability is still warranted.
Backlog is increasing which is good but it's the backlog within 12 months that you should focus on because anything longer won't hit revenues within the year. This company needs $400m+ in revenues and lower asbestos costs to be double digits, IMHO.