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Neogen Corp. Message Board

  • shortofaname_99 shortofaname_99 Sep 24, 2008 8:57 AM Flag

    Poor cash flow - something fishy about NEOG

    Company keeps showing increasing profits, but cash position keeps deteriorating. Co. has not generated any cash in the last 12 months. Receivables and inventory keeps increasing. Growth is fueled by acquisitions. The pyramid will collapse one day. This stock is worth $15 at best.

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    • I sure appreciate you regular posters who actually keep up with Neogen and know the company. I'm not a financial wiz, but I try to keep up as best I can and I appreciate your common sense, understandable words. I love this company. I hold some shares in my modest middleclass retirement account and also use some of their products in my work. I live a few blocks from Mr. Herbert's home and one of the business locations. The Herberts are a class act as is Neogen.

      Yes...this stock is NO PLACE for shorts. Long term growth!

    • Right - fishy stuff those increases in A/R and Inventories. I mean, revenue increases by 26% and A/R increases by 11% and inventories by less than 8%. That IS scary!

      Let's see... acquisitions made but still no long term debt. They didn't provide a cash flow statement with the release but I believe the company is generating cash but used a little more than generated by operations to make the acquisitions (I think this is the cause for the jump in goodwill, which is higher than the decrease in cash).

      They may have to slow down the acquisitions while they replenish their cash (assuming they don't take on some debt) but this does not imply poor cash flow or poor management. They just took advantage of good opportunities to make some synergistic acquisitions.

    • I suggest that you may want to seriously consider covering your short position now before you get totally annihilated.

      Congratulations to NEOG management for a job well done under difficult economic conditions.

    • I'll be listening for your questions on the conference call, shorty.

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