CJ's piece is finest Seeking Alpha article I've ever read
First person, other than me, to point out that current assets can't pay for current liabilities. They HAVE to keep borrowing to stay alive! Only they are hiding it by saying that they are "growing" when the earnings aren't that good. They actually fell the quarter before last. And they fell short last quarter too.
No mention of the law suits at all. Why - because just because you wish it to be overly relevant does not make it so. Interesting that he thinks the price is fair around 12 and that he is wanting to buy at a lower price. Good article - except for his debt outlook hard not to agree.
Well, actually.....I am pretty sure I saw that point raise in the last positive Seeking Alpha article. But it was refuted by the fact that large chunk of the current liabilities is a result of the pole tax being capitalized. Much less, that liability could be fulfilled by diverting cash for less than a year towards paying it, if needed. Every year that they go on without a solution.....the amount of cash Ricks generates per year grows. Plus $6M of debt would vanish if they had to pay the taxes from the Jaguars acquisition.
Ricks considers growing by the rate they grow revenues. While not that I care about how much revenues grow if they don't translate to the bottom line, that is clearly what Ricks means. Much less, some of the expenditures that cause growth to be smaller are acquisition related.....while most companies would capitalize them, Ricks expenses them do to there nature. Just like Amazon is normally unprofitable under GAAP......yet, the stock price keeps going up.