Nordex Explosives Ltd V.NXX

All doom and gloom?

[tayjon80]

I am unlikely to buy more but the doom and gloom statement of reliance, technology and dependence are also found in years when sales were lower than current.

The fact that the company went from negative cash flow of +/- 750k to positive cash flow of +/-250k is interesting.

The 3 major clients accounting for 70% of sales is hightly problematic without a doubt...but the $1m change in cash flow from operations to the positive side is interesting and worthy of consideration.

[Bboomer2]

The large inventory which seems static concerns me.   With inventory amounting to 4 months of sales convinces me that unless the plant is totally mismanaged, there is a lot of obsolete or unsaleable inventory like the ButtBusters and various detonators.   If this is a case, it should not be considered inventory since it cannot be sold and should be written off.   If Nordex doesn'

[tayjon80]

Finished product inventory actually decreased by 500k, but yes, the raw material inventory doubled.  So, I am not sure the actual hit is $5m.  All companies are going to carry some inventory of finished product so for arguement sake let's say 1/2 is supply chain inventory bringing down finished product to 1.5m and call $1m of raw obsolete. We get $2.5m to write off...as I am not an