I have been flirting with buying this company as a long term INVESTMENT. But I have the following concerns.
1) 830 milion shares are on issue plus 46 million convertible notes with another 20 million options a total of 906 million shares
2) Nett profit margin has gone from 30.4 cents per share to 4 cents
3) Earnings have gone from 6.2 cents to 1.2 cents pwer share
4) Income tax rate has risen from 7.8% to 39.2%
5) Biggest concern $366 million in debt
6)They book goodwill at an unheard of $583 million
7) Court action $4.6 million infringement of software supply agreement. $24.9 milliondispute with I Health in NZ
The positive is that they have some large and ongoing contracts, but with software there is always another competitor lurking around the corner. Just have a look at Rupert Murdochs purchase of Myspace and how that has turned into a dud investment.
The other positive is a projected profit of $10 million for this financial year. With a $366 million debt it would take 36 years to pay off at the current profit ratio. Of course they have takenover other companies and gained contracts so this will shorten in time.
I would like some informed comment for the LONG TERM INVESTOR on the above
Cheers
- Forums
- ASX - By Stock
- as an investor i have concerns
I have been flirting with buying this company as a long term...
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)