I have to disagree with you. The two posters to whom you refer enjoy an ability to put into understandable English some of the mumbo-jumbo that the public is told to read as part of their "due diligence". That much of the verbiage requires an education in bookeeping and years of experience is conveniently ignored by the SEC. After all, it's the public's $$$ companies need, not their understanding. It shouldn't take long to discern who is a windbag and who is not. Whether one agrees with the interpretations of the information given in the required filings is each individual's choice. But first you must be able to correctly diagnose some of the mumbo jumbo. Too many times I assume the English I read in these filings means X when indeed, to an experienced interpreter, it may mean Y. I don't feel I have to remind you of the influence of coporate face saving that is displayed in annual reports, etc. I refer to it as weasle-speak. You are aware of "Chainsaw" Al Dunlap's brief tenure at Sunbeam and why it was brief don't you? As post #1271 points out, the company does appear to have used up so much of the old line of credit that they are actually overdrawn on the new line that has a lower limit. Myself, despite years of investing, would not have understood the significance of those words in that document. I would realise that liabilities is a negative [at least by my investing standards] but nothing's comments were educational for me. What puzzles me is where this information was located. I did not find any pages in the annual report, just a long document. Where did you find a version of this document that had numbered pages? Anyway, this is my two cents. The annual report sounds positive. Progress is being made. But as anyone who reads Barrons has experienced, and especially over the last two years, statements by members of the investing community are not written in stone and the aura of wisdom and insight this industry cultivates at such great cost is certainly a "Potemkin Village". I think I will keep most of my shares if not all. I am certainly wiser, however slightly, from some of the commentary on this board. And that to me is of great value.
My page references are not very helpful since they depend upon my printer settings. The above document printed out in 77 pages on my printer. More importantly what I reference on page 52 is located in the "Notes to the Consolidated Financial Statement" Section 8, "Indebtedness". It also is referenced as page F13.
Regarding," The annual report sounds positive", be very leery of that. The safe harbor statement gives them great latitude to imply or even promise positive future results. Compare the beginnings of their last two conference calls. They are relying more and more on safe harbor warnings to cover their butts. During the 4Q call, the new CFO, went to great effort to cover PM's "for sure positive cash flow operating results" promise made during the 3Q call that did not come through, not even close.
The actual state of their current affairs can be gleamed from industry knowledge and subtle comments during the last call. They are apparently losing much of the business from their largest customer, Motorola. As typical, they will of course blame this on external factors. PM alluded to challenges with getting the "Infineon" line up and running per their commitments. In my opinion this and their operating weaknesses in China will probably be the next Parlex operating problems that become apparent. It may also be the killer when combined with their negative operating cash flow (let alone profits), minimal cash, extended credit lines, extended AP amounts ($8.3M to $13.7M over last year despite a dramatic sales drop).
I personally do not see how this company can survive without both recapitalization, which is no trivial issue as some have implied, and new management. This of course is my opinion.
Again I am short this stock and will likely increase my position.
Thank you for your long and, I must say, educational reply. I now more fully understand your position and also, what I thought was a jaundiced eye on my part for investing, has now been whetted by your comments and insights. For that, I owe you.