The info you provided, in my mind, is making MY case rather than yours.
The working capital deficit accounting treatment is such that it makes working capital not a good tool for this kind of stock.
Back to the yahoo thread to help make my case..."For 2000, MOVI generated about 35 million free cash flow (Adjusted EBIDTA - interest payments - taxes). That means they have 35 million to invest in their business. Which they did! They opened/acquired 125 new stores, payed down debt by 5 million, and bought back 5 million of stock.
Going forward, for 2001, they plan on opening 75 new stores. The excess cash available after this, will probably be used to pay down debt...this debt paydown is an astounding 20 million. (long term debt is currently 40 million)
So, in about 1.5-2 years MOVI will be debt free, and will generate about 40-45 million in free cash to do as they please with... Consider
that the market cap of this company is still around 45 million....... "
To me value investing is having the forsight to see what things will be in a few years. MOVI could well be debt free and cash flowing strong. In such case, I suspect the shares will be much higher.
As for the token insider buying. I like to look at it as at least they bought. Many stocks have NO insider buying whatsover. You make it sound like small amounts are worse than none. |
