Happy New Year @IceBreaker! and all other posters here. It seems...

Happy New Year @IceBreaker! and all other posters here. It seems you missed me .

As a New Year resolution, everyone should consider the best way of recovering capital. Is it in BUD, or are there better run companies with better prospects?

Now onto a brief analysis of this 4C.

1. Year to date the company is not really cash flow positive. A well-run company can afford to pay its CEO and once you add back the foregone salary you end up with a negative figure.
2. Revenue is not growing.
3. Expenses are artificially low due to less than expected sales and the need to run down the oversized inventory.
4. They still don't know how to report related party payments or DM has convinced James Nelson and Paul Russell to forego wages to make his reporting look better.
5. The most worrying item was the $410k borrowed from one of the unsecured shareholder loans. This could be a sign they are at the LVR limit of the PFG revolver and are having cash flow issues.

I expect another massaging of the books in Dec, followed by another possible fools gold announcement early in the New Year when terms go back to 60 days and a double-hit of cash arrives. From then on, I expect flat sales will see the company fall back to loss-making.

If this is as good as it gets, it's pretty concerning.