Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus who wrote (60096)	11/19/2017 10:12:43 AM
From: E_K_S	Respond to of 78742

Thank's will need to look at it as my GTC order still in at $0.38/share. Last Q's report was pretty good. Look's like Net income off substantially for last 3 months but in line for last 9 months when compared to 2016. They had a change in the way they report cash flows to better reflect cash from operations (not investments). Company getting partner to acquire equipment while they continue to operate (day to day) so a more binding partnership both w/ vested interests. They appear to be expanding their operattions w/ two other partners each in a different phase of profitability. One in particular continues to run at a loss w/ major insider equity investment/partner. Management appears to have worked out details for "fee for service" going forward, maintaing equity interest and future profitabilty w/ new structure. That shows that management in this micro cap can drill down and make an uprofitable situation profitable helping w/ bridge financing and/or further equity to make new facility profitable. The company did take on larger debt obligations to build out some of their facilities and/or finance equipment. Interest expenses higher but all structured w/ short term payback (5 years about) that may/could be extended. That is financed through operating cash flows and net income seem stable and growing as a result. Overall a good report w/ the company set up for future growth through their expansion/financing of those other facilities. The restructure required more capital that when packaged using investor/insider equity, bridge loans and/or capital equipment lease back and/or partner ownership and fee for service agreements resulting in the extra cash flow to support these operations. If/when that growth occurs, that extra debt s/d be paid off in 60 months (or less) w/ the higher cash flow making EPS higher. That sounds like a good combination. Will leave my GTC order in at $0.38/share as there could be some initial selling on their lower than expected EPS (for last 3 months) but w/o the entire picture may/could be selling a big winner when looking 60 months down the road. EKS