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)
STE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
