financial analysis on this creature

Some thoughts on this small cap telco.

The following thoughts are not meant to disparage the company but rather to ask some serious questions of the directors and board.

It would help you understand this company if some serious analysis was done of the balance sheet and the income statement.

Go tot their website and look for yourself.

Questions?


Is this company simply buying companies to increase revenue without regard to bad debts or cash flow consequences.

Some thoughts

1.Why did bad debts fall by 50% yet turnover increase by 25%

2.When a Current ratio is below 1.0 this suggests a company would have trouble paying debts as and when they fall due. What is the current ratio of M2.

3.Buying wholesale bases in telecomunications simply means they resell the services from Optus to other third parties at a small margin. This may look as though revenue is increasing at spectacular rates but at what margin is this new business. Does anyone out there understand the wholesale model in telecommunciations. Hello!!

4. Does anyone understand what Other Assets are that are termed Bartercard. Bartercard it is a trade offset company whereby you sell goods or services to one company and recieve a "barter dollar" not actual dollars in return. This recievebale is then entered into your balance sheet as an asset. So its not actually a dollar rather a "barter dollar" So what is the fair value of these barter dollars siting in the balance sheet. Are they written down to market value or are they in at one barter dollar equals one real australian dollar. The question should be asked.

5.How is the performance of their internet mobile division. What are actual sales to budget?

I have a lot more questions than I do answers for this company.

Please do your own research. Do not rely on comments from chat boards.