Hmm they indicate the 431K cash inflow being attributable to the 'continued improvement in trading'. Represents around 2.3% gross margin (of $18 million in sales). Part of this possibly deferred income from the previous loss making quarter (the latter being unfounded speculation on my part). Well, sure am glad we had a continued improvement in trading.. I shouldn't complain, sure beats the usual kick in the nuts we get when a monthly or quarterly is released.
Tell me, why does a company starting the year $4M in debt (overdraft), who will face difficulties raising further capital, who faces the very real possibility of turning a substantial loss if trading conditions deteriorate even slightly - decide to acquire a company (BPL) for several million dollars? Is risk assessment/mitigation non existent for this company? Not too much to ask I thought, just get your house in order and start becoming cash flow positive. Perhaps this is what you get offering stock option incentives, directors going for high risk growth, as it provides greatest opportunity for their personal return.
TEK Price at posting:
0.8¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)