Thanks for actually reading my posts. Regarding the issue of...

Thanks for actually reading my posts.

Regarding the issue of whether Slater is more aggressive with their accounting, I actually don't think they are. From my numbers so far, I can tell you that both Slaters and Shine's numbers look very similar, in terms of WIP conversion of last year to this year, and cash cost last year to this year cash revenue, etc.

I'm not suggesting either both company is cheating or both is squeaky clean, most likely it's somewhere in between. Like our PI lawyer friend benfool have mentioned already in detail, he doesn't think you can actually estimate anything accurately in this field, but rather the company should be able to estimate the worst case scenario and at least cover cost if not make a lot on top.

However, I am certain of the fact that Shine has little debt compared to Slater, look at my post above. Slater can't really take hits, i.e. if they have a short term cashflow problem, banks could pretty much bankrupt them if they want. Shine can take a few cashflow hit and they still can borrow more money due to their low debt. Most companies go down not because they are not good businesses that can generate substantial future earnings, but rather they just have too much debt and happen to hit cashflow problems while carrying maximum debt.

Further, Slater's current behaviour, such as not releasing debt position, cashflow, people fired or quit, really is something that points to potential bankruptcy. This is the main reason I sold out of that and came into Shine.