Having been in business once I only look at the cash.12 months...

Having been in business once I only look at the cash.

12 months ago it was 24M cash and 15M borrowings. Now its 6.7 M cash and 27M borrowings. I appreciate recievables have increased however this is hardly good news - more time to get the customers to pay. Plus there is a $1M increase in inventory that you and I would have no way of valueing correctly.

I think the bottom line is that margins are skinny hence the numbers can bounce around dramatically from one period to the next. So there is currently no earnings quality.

I would prefer it if they paid no dividends and bought back shares instead - a far better outcome for shareholders in the end.

I am happy to be proven wrong (I have bought and sold these once already) and I would buy them again if the price falls far enough. However they are really only a trading stock - it is much better investing method trying to identfy companies with consistent growth in earnings and good profit margins.