Post by
Hiddensecrets on Sep 23, 2020 12:40pm
Poor gross margins: +/- 5% expected before financing costs
The issue with this company is very simple:
POOR GROSS MARGINS
HIGH FINANCING COSTS
DEBTS ON BOOKS
So say +/- 5% on $ 125 million in lastest contracts means $ 6 million gross margins.
Take some off for financing costs and you are left at say $ 4 million.
Then you have general expenses to account for.
End line, you have very little left and are still stuck with DEBT.
MPO
Comment by
old_dog on Sep 23, 2020 1:18pm
As per ratio data on stockhouses site https://stockhouse.com/companies/ratios?symbol=v.mrs old_dog
Comment by
Jolleygreen3 on Sep 23, 2020 11:14pm
where do you get 5 percent margins, it says right in the news release their margins will be relative to the margins in recent contracts which were 7% to 11% I beleive
Comment by
bigkagan on Sep 24, 2020 1:21am
yes, it's a dog eats dog world, they have their own network of suppliers and they know how to squeeze out the last penny out of those people - "trust in me when I say" like the song says
Comment by
AucontraireII on Sep 23, 2020 1:34pm
Hidden, hate to admit it, but I think you are exactly right. This latest contract keeps the lights on which were about to go out, but not much more. They need big foreign military contracts... fleeting need for PPE won't cut it I'm afraid.
Comment by
bigkagan on Sep 23, 2020 4:11pm
don't worry, they will get those gowns and gloves for very cheap in the 3rd World, the margins will be great
Comment by
bigkagan on Sep 23, 2020 4:14pm
MRS won't be buying PPE from the union shops in Canada and US where they pay $25 an hour, that's for sure, hee