The way i See it , they have debt 11M , the bar line is up for...

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ASXleo

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02/06/23

11:52

Post #: 68097883
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Originally posted by meghotcop: ↑

It is clear now, that the prelim report has not damaged the SP.

If I try to do an Enterprise Value (market cap + debt - cash and equivalents), and divide that by the SOI, then I get a value of 6c per share. I am wondering if that could be the reason that the SP has not tanked. I am unsure about my thinking here, since adding on debt increases the EV, and therefore the value per share. I understand the formula requires it, and it makes sense to me for a stock that is profitable (when debt is cheaper than equity). Not the case here.
Someone with good knowledge is required here.

Page 5 of the report is in my opinion a good statement of how the business model performs on a cash flow basis (i.e. "unencumbered" by accountancy considerations):

receipts from customers went up by 37% yoy to $92.2m
payments to suppliers and employees went up by 35% yoy to $94.2m
= economics of scale not kicking in.

adding in interest paid, the net loss from operating activities went up by 56% yoy to $3.856 (from $2.446m)

I think page 5 is a good descriptor of how the business works as such, since there are no write down, value adjustments, non-cash items etc involved. It therefore gives an insight of how the money was flowing yoy, and what the management had to work with.

Replies and insights are welcome, and I stand to be corrected. Cheers

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The way i See it , they have debt 11M , the bar line is up for sale for 4 Mil , if they managed to sell it and pay down the debt to 9Mil which is 10% of revenue. they have water lanes to navigate for more wind .
in best case scenario, they need also to sell the NZ business for good and leave the country this might reduce the debt further. and HLF should end up with CM that got 50M revenue and profitable and the brands. with solid growth and stop playing Elon mask games and buy stupid companies they might crawl back to a range of 30-50Mil MC .
that's why there is some still putting money on this horse.
HLF Price at posting: 1.1¢ Sentiment: None Disclosure: Not Held
3 Upvote

0 Great analysis

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