| | | What is it that you find attractive about SSI ?
Yes, it's had a recent jump in its share price to about $7.50, but it's since fallen back over 26% to $5.50 in 4 days.
But more importantly, this company has been LOSING money for the last 3 years and for the last 8 Quarters ......
..... And not only is SSI losing money at its Bottom Line, it's already Losing money after its "Compulsory" Expenses of Cost of Revenues and SG&A, i.e. at its EBITDA level.
I thought that the primary objective of a company, especially a Public one, was to make a PROFIT ?
IMO, if a company is already losing money at EBITDA then it has a serious problem.
In the link that you posted, AMBRA CAPITAL made the following comment .....
But the way I see it SSI made a Loss at its EBITDA level in its latest Q3 ......
EBITDA = 415 - (315.5 + 111.2 + 0) = a loss of -$11.7 million.
You also stated that ....
" ... saw a 7.6% increase in adjusted EBITDA margin yoy."
But SSI's EBITDA in FY 2018 was = 1651.2 - (1228.8 + 460.3 + 0) = -$37.9 mil.,
and its EBITDA in FY 2019 was = 1641.5 - (12350.9 + 457.6 + 0) = -$67.0 mil.
So to me that looks like a Decrease in its yoy EBITDA margin from -37.9/1651.2 = -2.3%
to -67/1641.5 = -4.1%.
The way I see it, it's all very well for the likes of AMBRA CAPITAL to make 'predictions' and 'assumptions' about SSI's "positive future", but I'd say it would be prudent to wait and see if those rosy predictions manifest themselves in SSI's future, and preferably Audited, Financial Statements.
So, unless the numbers shown in the KOYFIN web site are incorrect, I'd say that it's also unlikely that Mr. Buffett will be buying into SSI with some of his 'tons of cash'. |
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