DLS 0.00% 69.0¢ drillsearch energy limited

Just to point out, with a strong growth company I would think...

  1. 1,932 Posts.
    Just to point out, with a strong growth company I would think profitability isn't that import. As most of the money they earn should be reinvested in growing. Of course without any form of profit you can't reinvest without CR's or the like.

    Cash flow, or more precisely Free Cash Flow is the important factor, this is an indicator of the companies ability to service its debts, reinvest and leave room to spare. If that remains steady or grows that is great. If it shrinks and doesn't forecast to increase it quickly that is when things can look bad. Probably an indication of too much debt/'growth choke'.
 
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