STE 10.0% 5.5¢ stratatel limited

technical analysis, page-4

  1. 261 Posts.
    re: flats Growth rate for the 2 months of December 2004 and January 2005 was disappointing.

    Only 3.5 % (38000 – 35500)/2.

    Cash flow for the quarter was unexpectedly low at $5,000.

    Their explanation of having to upgrade the Mobile Fleet server was a weak one. This is not a one off expense.

    As regards the Cardmanager developmental costs, I guess they would not get much change out of $30,000 for the quarter.

    Likewise for the management trip to Europe. I am only guessing but I would have expected that they would have taken a delegation, and not just the GM. Not much change from $20,000.

    And if anyone thinks the trip to Europe was a junket, well, Europe in November is no holiday. They would have been serious about a deal with a Telco. They are trying to catch a big fish. Its all about economies of scale.

    If they had done nothing they could have reported a “healthy” cash flow of around $50,000 for the quarter.

    I guess investors have to consider whether it is money well spent. Time will tell. If nothing comes of the trip to Europe it’s a big thumbs down.

    (And my continuing thanks to Flats for his negative comments. Hotcopper could benefit a lot more from posters who tell us what is fundamentally wrong with our thinking)
 
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