DukeCrow
While FLM has had large CAPEX over the last 4 quarters, my system of cash flow analysis factors that. They have poor working capital because they are bleeding cash from operations. In the last 4 quarters, they have a negative CFO of 94M. In addition to that they invested an excess of 56M in CAPEX.
I would be delighted with the CAPEX numbers if they were FCF positive, but they are not. The negative numbers on CFO are not decreasing Q to Q. Whether this is a business that makes all of its money in one Q or not, I don't know. But the picture for 4Qs is not one I want to be invested in.
I haven't done a detailed analysis of FLM, so there is more that I don't know about the company than there is that I know. I have only crunched the cash flow numbers as provided by Yahoo.
You are correct in assuming that if they are correcting problems and have deep enough pockets, they may weather this storm. I, however, am taking the position that if, as a retailer, they can't make money in this strong consumer-driven market, they will find it more difficult going forward as the consumer starts to slow down.
Just my fractured input!
Timba |
