I posted cash flows normalized to sales in message #1446. The data you presented were misleading in that you showed 1 quarter of cash flow, then 2 quarters of cash flow, and then 3 quarters of cash flow. I broke it down into the cash flow for each quarter. Your numbers suggest than negative cash flow is getting worse each quarter. My numbers show that negative cash flow was largest in the second quarter and has declined somewhat (although still negative) in the third.
The reason for the negative cash flow is, of course, obvious. Its the increase in DSO. Simply put, it is taking ANLT longer to get paid for the work they do, but they have to pay for the work as it is completed. This is understandable. The company did mention that the size and scope of their projects has increased and that means it will take them longer to get paid (most customers don't want to pay for large chunk of the cost of project until it is complete).
Because of ANLT's small size and rapid growth the problem is a lot more noticeable (i.e. the cash flow difficulties) than it would be for a larger company. And this shows up in the volatility of their stock.
So the question is, really, what is the impact? Is the company going to go out of business? No. How will the stock be affected? Adversely. But it already happened. This stock is 28% off where it was when the most recent 10Q issued and this whole issue was raised. I didn't look at the 10Q all that closely when it first came out, but it was obvious from the stocks reaction that something was wrong with it. Later, HCOR and you did me a service by raising the issue--prompting me to look into it. It is now clear to me than the rapid drop from 29 to 21 was likely due to this issue.
Anyways, the stock has already taken the short term hit expected for the cash flow issue. If you wanted to exploit this issue with a short, you are too late, you should have shorted when it was at 29.
With the recent market weakness, the stock fell nearly 30% further. A short co