Free cash flow is why NOVL can buy in $400,000,000 of stock, from a cash position of $1,000,000,000; then, post a quarterly loss; then, still show up with $1,000,000,000 cash a year later. (All numbers and times approximate.)
Free cash flow is usually a sign of a mature company, in a mature industry. Not either case here. This free cash flow comes largely from having no debt to absorb the cash. I had not recognized the full import of those cash flow numbers, until your post. Thank you.
Mr. Market is banging on the door with a hammer, trying to give away his ownership of this company. He is a fool, indeed, at this moment. |
