...cash nil...debt of over $30 a share and increasing?...book value minus intangibles and goodwill is around NEGATIVE $10 a share??...all that despite the company reporting around $20 a share in earnings the past five years???...what's wrong with this picture?...
...then consider how severe an impact a cutback in government spending might have...Wheeler in particular appears highly dependent on the USPS and everyone knows the problems USPS currently has -- "Every day the Postal Service posts a loss of $25 million dollars" per:
The book value is probably more in the area of 10 dollars. you are right for a company that makes 3 to 4 dollars in earnings a year with a paltry dividend you would think cash on hand would be much greater yet the debt gets larger each year. The contract they got sounds very large but how much earnings will come from this and will the cash stop going down some black hole. a very strange company compared to other companies that earn a whole lot less yet their cash goes up and their debt either goes down or stays the same.
...uhhhh -- no, not really...the company makes oodles of money on the services they already provide...and they've had big contracts that have made big money in the past...unfortunately, practically none of it seems to reach shareholders in the form of real equity or dividends...shareholders just find themselves holding more goodwill, more intangibles, and more debt...what is it about this particular contract that will alter those circumstances?
...indeed, compare the current 10Q with one from five YEARS ago when the comapny had $5 a share in cash, almost $20 a share that was in REAL assets -- minimal goodwill, intangibles, NO debt, and paid 28 cents a share in dividends (versus the current 32 cents):