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clock Created with Sketch. 29/06/15
20:38
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Originally posted by insomniac
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Swanning.. To some extent I have been posting, hoping someone could refute my cashflow is poor thesis. Some flippant recourse to Buffet and Graham is the only riposte. I initially was wanting to buy in thinking the was an opportunity to snare a bargain, on sunday i did a bit of research. ... the cashflow was the problem and stopped me buying. Believe me a I was hoping of buying a $100k with view to an easy and quick profit, so its not like I've come in with a bias when researching this stock. I would love someone to educate me ofherwise (I am a laymaen when it comes to reading the books) ...so I could dive in eyes wide open and buy this stock. Re the balance sheet, its more about the goodwill being somewhat questionable. WIP is something i use in my business and WIP can go from hero to zero no matter how mch you think the wip will turn into jobs complted /to be invoiced. The bottom line is this business has thrown off cash (in a volatile way) of on average of only $4m per year for the past 5 years. I dont think that is very good. But I am absolutely prepared to be corrected, and would be happy for someone to do so, because I too would like to feast on a bargain.
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Lockup is the bain of all professional services firm and is obviously a key driver for cash flow. I might be a layman myself, but I am being guided by EPS and potential EPS upside.
