Interested in this stock? The following stock was discussed on Sahamas.
Here is some of the main issues about the stock.
Plus.
- potential for the company to grow is there
- profitable business
- healthy balance sheet
Minus.
- 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.
- Not comfortable with the e-business because the biggest asset is them brain cells. Which means competition could easily emerge.
How?
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