isoman, I looked at CLVE news release, not only I find the floorless dangerous, but that acquisition, they have $3.5 MM in assets, of which $3.1 MM are accounts receivable, a great asset, on the face of it, but then, the next sentence says they have monthly sales of $200,000. That means that those accounts receivable are for 17 months!!!!!! If I have ever seen a danger sign that is one. That means that either the business is dropping like a stone, or that most of these receivable are not collectible. So, CLVE take a floorless in of which $1.2 MM is going to go to pay cash for that acquisition. No, something smells here. Anyone checked if there is any relationship between the managements of the companies?
Zeev |
