as sales continue to decline......
1.7 mm in cash and equivs . and 2.4 mm in liabilities still losing 450 k a quarter and 22% margins thats 2 million in sales needed to breakeven ... now plug in sales to show a profit .....you baggies will come back with 2million and 1 dollar ...lol
theres no growth they are in survival mode .......sales continue to decline ,,, so if JC cuts more jobs and doesnt pay for cost of goods to ramp up and grow the company the balance sheet looks good right ...lol
TICK TOCK , JONES needs more cash to survive but more important is cash to grow the buisness , they are no where near being cash flow positive to cover cost of operations.....
break-even? how stupid do you think people are? They company generated operating cash flow... that is the important measure. Positive earnings per share would be great and will happen but positive operating cash flow is what is necessary right now as a first step. By the time the company is profitable on and EPS basis the price will be north of $1.50.... drink that nuttysquirrelldung. The time to get in is now which is exactly what people are doing.
gross profit contribution is more important that sales at this juncture. spending 1.2 for 1.0 in sales as meissner did cost him his job gross profit in 12 was higher than previous 4 years fact.
also yout analysis of GP% doesnt account for written off inventory which lowered the % fact.
your assumptions should be based on normalized GP % which is closer to 30% fact.
your assumptions assumes a static analysis and as revs climb leverage always produces higher GP %'s.
enjoy the ride up squirrellshiat.