SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: cpabobp who wrote (10986)7/22/2000 10:53:55 AM
From: Michael Burry1 Recommendation  Read Replies (1) of 78525
 
why "in a period that profits and revenue are growing and strong, why can they not generate enough cash to provide positive cash from operations for a single quarter?"

Bob, you hit on the primary reason I'm not in the home builders. Looking at the cash flows of the few companies I was intereste in led me to the same question. It wasn't always negative, but it was never big enough for me to think it would not become so significantly negative during a downturn as to wipe out the small positive during the boom time. Net zero or net negative over the cycle.

I thought there might be a dynamic that I did not understand. And could not understand. How comfortable for me to know that DHOM's CFO is in the same boat. The way some of these companies purchase inflated real estate during the boom times, I guess I shouldn't be surprised.

Good investing,
Mike
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News