the last 2 years have been exceptional in terms of free cashflow as sales have fallen and the business has extracted effciencies ..hence working capital has run down and that is where the free cashflow is.
if sales are growing then the freecashflow will drop, probably to around zero, as the core business is not very profitable....hence the companies forecast for a very modest freecashflow (after dividends mind you) of about $3m........and mostly due to overall sales still falling......
the main problem with this announcement is we are losing about 25% of our earnings? and have no obvious measures to replace the earnings...hence debt falls to around zero.......they will have to buy stuff I imagine......given their history, not good?
MCP Price at posting:
$1.05 Sentiment: Hold Disclosure: Not Held
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