XSO 1.05% 2,997.5 s&p/asx small ordinaries

The Brains Trust, page-12444

  1. 7,626 Posts.
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    @VVX565,
    I don't want you to lose faith in your program , but it is machine generated only concerned with hard numbers but it doesn't understand other vital issues.
    I had a quick look at EMB....Doesn't deserve another look.
    # Manufacturer of floor coverings.....Not too sexy.
    # 45% controlled by founder George Embelton.....Very poor liquidity.
    # Yes , it is increasing sales , but ....
    # Gross profit margin is 38%.....This is bad.....Any slight drop in sales will be detrimental.
    # NPAT/Sales ratio 5%......Not great for all the effort & risk.
    # Negative operating cash flow.
    # No Cash.
    # Very constrained working capital (Working capital ratio well under 1).....This is quite risky for manufacturers that need a much higher ratio given the capital intensive nature of the business.
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    What I am trying to say....Use the machine program for leads , but don't take the value line as gospel , it will be misleading......There is no substitute for the human brain
 
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