FINJAN HOLDINGS, INC Message Board
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One persons take on operations
While looking at this stock, I have to appreciate that the company is vested heavily in future operations. There is a downside though.
Are the current economic conditions presenting a timing problem for this company? Fertilizer is probably low on the list for many under employed and unemployed family's this coming spring.
Has the company pushed their liquidity to dangerously low levels?
Based on a quick look at the company filings, it would appear that COIN may be on the edge of a liquidity collapse.
Current Ratio 12/31/08 - 78% 09/30/09 - 28%
The pure liquidity (cash) of this company as of 09/30/09 has fallen to just 28% of what it was 9 months prior.
Inventories are up 62% in the same period. New production plants are great, but are they producing too much to sell?
As of 09/30/09 current assets overall are just 40% of what they were 12/31/08.
GOGS on 3Q sales and all of 09 are THRU THE ROOF compared to 08.
On the plus side, the loss for 09 to date (as of 3Q filing) looks much better than 08, but still far from being profitable.
Thoughts?-
Dont forget that with crisis, people spend more time at their homes and gardens and there is an increase in home entertainment, like gardening, instead of dining out or going to the cinema.
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Will try to address some of your points:
"Are the current economic conditions presenting a timing problem for this company?"
Some homeowners may elect to not fertilize their lawns, but others will work to keep their lawns green, and there will probably be a lot of people growing their own vegetables who will want to use organic fertilizer, but the agricultural fertilizer market dwarfs the residential retail market, and the pro turf market is pretty large, too.
"The pure liquidity (cash) of this company as of 09/30/09 has fallen to just 28% of what it was 9 months prior."
Though it is mentioned on page 7 of the 10-Q, the $16.4M generated by the October offering of stock and warrants doesn't show up in the balance sheet, which only covers until the end of Q3.
"Inventories are up 62% in the same period. New production plants are great, but are they producing too much to sell?"
Their Woodbridge production capacity is limited to about 15% of the total due to the corrosion problems I wrote of earlier. That was enough to get them through last year, but not enough to allow them to grow much in 2010 -- unless they fix the digesters or add new ones in a timely manner. So they've been building inventory in order to get them past the production slowdown.
BTW, per the talk at the CC, Gonzales has no production problems, and sells everything it can make.
"As of 09/30/09 current assets overall are just 40% of what they were 12/31/08."
That's due to two things, the cash burn, and the reduction in restricted cash, which was set aside -- and used to pay for -- the Woodbridge plant. That restricted cash moved into the property and equipment portion of the balance sheet.
"GOGS on 3Q sales and all of 09 are THRU THE ROOF compared to 08"
Did you mean COGS?
It has to do with the expensing of Woodbridge, now that it's operational. 2008 was only a partial year, with COGS going up in the 2nd half of 2008 to reflect the fact that Woodbridge was finally going online.
Hope this info helps.
No more posts tonight for me. -
If a person invested $10,000 into their landscaping I'm 100% certain they will buy a $40.00 bag of fertilizer to keep it alive. People love their gardens. In tough times they may give up vacations and fancy cars, but will enjoy their beautiful landscaped patios.
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