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Monday, February 12, 2007

Interested in this stock? The following stock was discussed on Sahamas.

Here is some of the main issues about the stock.

Plus.

  1. potential for the company to grow is there
  2. profitable business
  3. healthy balance sheet
Minus.
  1. cash management should and could be better. In that sense, for such a profitable business, the company could perhaps attempt to give a more rewarding return of equity to its shareholders. If you look into its cash flow, cash flow as actually around 16 mil. But cash flow although increased by a healthy some 2.615 million, in my opinion, they could have done better because in their investing activities, the company invested some 10 million into unit trusts. This is a personal issue. For me, it's a no-no. Remember these are young chaps running the company, perhaps they should have done the right thing by increasing the excess capital back to their shareholders. 30% of their profits back to the shareholders is simply not enuf when you consider they have excess money to invest into unit trusts. Again, i stress, this is a rather personal choice or view of mine. For some, it's OK but for some like me, it's a no-no.
  2. Not comfortable with the e-business because the biggest asset is them brain cells. Which means competition could easily emerge.

How?

Read more here

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