Yeah I agree there will always be timing issues and matching issues between sales and cogs sold on a cash in/out basis - but I'm still convinced that they brought up inventories in the June quarter of which they have used in part in September. I'll await the Half year report next February and what they quote as the inventory figure there. In June it was just over $2m, lets see what it is at end December
Believe me I'm still very positive AJX and the prospects look very good - but I also want to be realistic - especially since so much was made of them being cash flow positive and profitable.
At 30% margin say and cash operating expenses of $2.3m a quarter then they'd need cash receipts of around $8m to be truly cash neutral
AJX Price at posting:
44.5¢ Sentiment: Buy Disclosure: Held
