I have absolutely no doubt you are correct.
Fast Sales Growth for a company with manufactured retail goods = Huge Cash Shortfall.
It usually also means that if if the sales do eventuate and continue to growth then profits will also look weak for some time.
This is absolutely normal. The risk is that they run out of cash. I don't know what their cash cycle is like but I would imagine like most other co's they need to pay for goods much earlier than when they receive payment at the other end from the customers.
Hopefully they will be able to fund this working capital through a combination of capital raising and debt rather than just CR.
We'll see.
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I have absolutely no doubt you are correct. Fast Sales Growth...
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