"The trick is ........... " ??!!
Further to your other posts :-
Message 32638065
Message 32637883
...... and my "narrow notions ..... "
...... I have to wonder about your Interpretations of the REALLY RELEVANT COMPONENTS OF A COMPANY'S FINANCIAL STATEMENTS.
First of all TLRD's TTM TOTAL REVENUES are DECLINING. As Paul Senior quite correctly pointed out --->
"For cash flow to flow, there's got to be sales (revenue generation)." !!!
BUT, all we see with TLRD is a DECLINING REVENUE ........
Then we see this company making a HUGE LOSS OF OVER $165 MILLION in the last 12 months !!!
Then you keep going on about CASH FLOW, FREE OR OTHERWISE.
But this company's NET CHANGE IN CASH IS DOWN !!!
And we see this NEGATIVE EFFECT reflected on this company's Balance Sheet where we see that TLRD only has about $14.4 mil. LEFT OVER IN CASH !!!
In fact that's a "Peanut Amount" in the GRAND SCHEME OF THINGS ON TLRD's Overall Balance Sheet ....
And then, finally, we see that this company's TOTAL ASSETS ARE $2,419 MIL. .........
HOWEVER, it's TOTAL LIABILITIES are $2,517 mil. ......
And when "I went to school" when a company's Total Liabilities EXCEEDED its Total Assets, that company was TECHNICALLY INSOLVENT !!
And finally, we see the DETERIORATION in this company's RETAINED INCOME, which has REMAINED NEGATIVE for at least the last 5 YEARS, due, no doubt, to Bottom Line LOSSES over numerous previous reporting periods !!!
As I've mentioned to you before ......
SHARE CAPITAL + RETAINED INCOME = TOTAL ASSETS - TOTAL LIABILITIES.
Therefore if "RETAINED INCOME" continues to DECREASE due to Bottom Line LOSSES then the right side of that Balance Sheet EQUATION GETS WORSE, Free Cash or No Free Cash ...... and in TLRD's case it has a relatively minimal amount of NET CASH reflected in its Cash Flow Statement !!
And with regard to ---> "For it is worth, I think your notion of what it means to be an investor (Graham style?) is rather narrow." .....
...... I'm not a "(Benjamin) Graham style" investor, I'm a Warren Buffett style investor. In my opinion, if Graham was alive today he would not be worth anywhere near what Warren Buffett is worth, due to Buffett's share holding in Berkshire Hathaway.
When Buffett worked for Graham he concluded that there were "flaws/inconsistencies" in Graham's investing strategies. So Buffett devised his own Investing Criteria based, primarily, on identifying companies that reflected DURABLE COMPETITIVE ADVANTAGE. Purchases of shares in that category of company has resulted in Buffett being worth many billions of dollars.
So if you want to hang around with this TLRD Loser of a company FOR 5 YEARS OR MORE, in the hope that it may turn itself around, then be my guest ...... |
