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DANKA BUS ADR Message Board

  • momentumman2002 momentumman2002 Jun 15, 2005 3:56 PM Flag

    This bears REPEATING

    Duckduffer, DFWtracker and all you other longs frantically trying to pump this stock, please, oh please, come to your senses or at the least quit encouraging others to follow your well worn and proven course in "How to Lose Money Investing in Penny Stocks".

    This most recent Loss Report is about as ugly as a public company could ever possibily post for the world to see.

    Lets begin with the shrinkage. Revenues continue a 7 year slide towards oblivion this quarter losing ANOTHER 13%.(That's another $100 million+ in lost revenue for those counting)

    Turnaround? Not bloody likely. Keep cutting those costs because the announced cost reduction program now doesn't even cover the revenue Danka has managed to loose in just the last quarter. Death spiral defined.

    Gross Margins falling from 35% to 27.6%. That is disasterous in what is historically Danka's only strong quarter. What's going to happen when they enter their seasonally weakest quarters upcoming and need to make debt payments?

    Cash???? All you longs keep saying look to the cash. generates $1.2 billion in sales and they manage to keep $8.8 MILLION for the entire YEAR??

    I just love how cavalier you longs are with your casual references to "one offs" or one-time charges. Do you really care how the management destroys your corporate wealth? Is it easier to swallow if they're only "one-offs"? Care to go back a few years and see how many "One-Offs" Danka has forced you to swallow? By the way, your Shareholder Equity, you remember the account that you actually own, is now further negative than before with these little one-offs. Oooops.

    Now the kicker. I love this one. "...the Company will be disclosing that it has material weaknesses in internal controls relating to its information technology general controls, revenue and billing processes, inventory and rental assets custody and tracking processes, its financial statement close process and its income tax process."

    The fricking management doesn't have control over ANY of it's business systems??? NONE OF THEM PEOPLE. What the hell is management doing if they don't have material control over the ENTIRE business????? Yeah, lets invest here.

    DFWtracker, you posted not long ago that Danka had completed it's review of its A/R and already reported its findings???? OOOOOOOOPPPPPS. Well here's another "...$17.8 million trade receivables allowance for doubtful accounts adjustments". Well at least it's only a "one-off". A $17 MILLION one-off.

    And just to make sure all the shi* hits the fan at once, our CFO is resigning. Damn.

    Taken one by one all these issues are bad enough. Taken together they paint a seriously distressing picture of the financial and operational state of Danka.

    You longs need to call the Doctor because your patient is on life support. If Danka was in the emergency room you would need to apply the defibulator and shock it because it is near death.

    Invest at your own RISK.

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    • makin_a_long_story_short makin_a_long_story_short Jun 17, 2005 2:03 AM Flag

      WHOA......... not so fast.... I never admitted it's a buy, not even close!! The concept of trading is the only thing I was in line with... GEEZZZZZZ... ya can throw a party later when and if I get back in.

    • "And just to make sure all the shi* hits the fan at once, our CFO is resigning. Damn."

      Make that BOTH.

      One resigned because he refused to sign the bogus books. The other "retired".

    • Geez, thanks for "advising" me to sell. That's some really great "insight" on how the 8.8 million in quarterly cash flow magically became annual cash flow, liar. Rule #1, don't post lies when giving "advice". Makes you appear to have a view that isn't "objective". Newflash- no one here is terribly concerned about shareholder equity, the opportunity is this company lowering SG&A and making a profit. Shareholders equity will be the last thing on investors minds if this company comes through with 70 million off bottom line expenses. Unbelievable that you bashers still don't get it. Hardly worth the effort to post when you "deep thinkers" get to posting. Could it be anymore transparent that you are either a competitor or an ex? Are you that dense that you don't see it?

      • 2 Replies to duckduffer
      • Duckfluffer, you are wedded to Danka tighter than First Cousins in Arkansas.

        Who's opinion carries the day here? Yours? You slapped the old Duckfluffer "Strong Buy" on this as it has slid towards oblivion. How long have you had this opinion now? 5 years? Farther? When was the actual wedding date?

        You see the sign of a thinking individual is one where they can change their mind when contradictory evidence presents itself.

        Do you need any more overwhelming contradictory evidence of the fact that Danka is "Strong Buy" now that you've had the chance to fully absorb the last financial report. I have to wonder if you actually read the announcements. Who wants to think bad of their mate?

        That report would mark a full seven years of revenue declines combined with a savaged Gross Margin combined with huge write-offs combined with disclosures to the SEC saying "We don't know what the f*ck we're doing" combined with our CFO is "retiring" combined with we lost gobs of money, again.

        Oh yeah, I forgot, that's what a Strong Buy looks like. Damn, I nearly forgot.

      • Actually the tie to lowering has been lowering SG&A and the big kicker has been Oracle. It sounds to me that if the internal controls are all wacked then this is bigger than a little tweak to Oracle.

        It is as I have been saying, they have not replaced any of there systems, in fact they added one.