@Lollies
when you buy a product, with a plan to resell it for a profit - you have to buy the product first.
When you are growing 70% Quarter on Quarter and expect similar rates of growth in future periods, it necessitates buying more inventory than you sold in the previous period.
Thus, the cost of manufacturing and operating will necessarily be higher. This is a cash flow statement, not a profit and loss.
Its also promising in this update that there is some operating leverage coming through. You can see the same period last year they had nearly $1.5m cash burn for $1.08m revenue. This period its over double the revenue and a lower cash burn. A spreadsheet a few minutes could make some interesting numbers if those two trends continued.
![]()
There is no doubt that the company still spends more money than it receives currently. This is a growth story pure and simple.
If they can keep up the revenue growth, I am sure investors will be quite happy. If they don't, then the thesis for me is broken and I suspect the share price will tell the tale.
- Forums
- ASX - By Stock
- CLB
- Ann: Quarterly Activities Report & Appendix 4C
Ann: Quarterly Activities Report & Appendix 4C, page-19
-
- There are more pages in this discussion • 24 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
STX
Strike hands $48.5M contract to Clarke Energy to produce 20x 4.5MW gas engines for Sth Erregulla
TG1
TechGen Metals kicks off airborne geophys survey at Sally Downs copper play – a first for the permit
Add CLB (ASX) to my watchlist
|
|||||
Last
$1.10 |
Change
0.000(0.00%) |
Mkt cap ! $4.6M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Featured News
STX
Strike hands $48.5M contract to Clarke Energy to produce 20x 4.5MW gas engines for Sth Erregulla
MND
Albemarle lithium downsize burns $200M hole in Monadelphous's pocket as latter's contracts terminated
CLB (ASX) Chart |
Day chart unavailable