Appreciate the response. I assume the 1B of debt includes the securitized A/R which are deteriorating rapidly according to their monthly releases.
Sounds like the buyback and insider/hedge fund buys could be to maintain control despite the dilution.
Is this based on the recent S-3 filed on Friday for $500M? What's your take on the filing?
Not sure if you are responding to me or someone else. I was talking about operating cash flow, not operating income. I consider operating cash flow a better metric of performance
Amazon reported positive operating cash flow each of the last 3 years and last 3 quarters.
According to CC, they have no plans to buy back shares soon. Probably due to the softening they are seeing and poor expected March numbers....negative operating cash flow, etc. I'm long with a small speculative position as I think there is a possibility they can turn it around.
Robin Hood has free trades. Not sure if you can invest in AEHR through them as the trade off is two day holding period to get sale proceeds.
Agreed, not to mention lot's of talk of slower growth, including poor March numbers. Think they downplayed the slowdown in the oil markets based on other industries that are showing signs of weakness, real estate, etc.
Other reason that article is interesting is that Norm Miller (Conn's CEO) was at the helm of that company for a period as well.
Thought this article has a lot of parellels to the Conn's story. Growing companies go BK all the time.
Search on Seeking Alpha for this: The Reason For The DFC Global Buyout, Or Why You Should Read Corporate Filings Carefully
What are your thoughts?
Thanks for the response. I realize that total cash flow (operating/investing/financing) is positive, but operating is negative. If you borrow money, you will have positive cash flow, but may not be in a better financial situation. Note that building units is not operational cash flow but investing.
Interested in anyone's thoughts/concerns regarding the consistent negative operational cash flow and if there's a sustainable delinquency rate that turns this number positive.
Didn't they get to book the XP that shipped, maybe under their revenue recognition, they can't book the whole thing, but was hoping they'd book $5M for the XP alone. Noticed that no one here was very excited about the XP shipment news...given the lack of news re 1p.
If the retail business was profitable, wouldn't the company have generated positive operational cash flow at some point in the last several quarters?
At what delinquency level do you think they can turn a real profit? What metric are you using to determine that they are making money under the current delinquency environment?
Didn't the rate increase .1% over last year, why is this considered more favorable? Is there a way to parse out whether this relates to the new portfolio vs. old? or is this all new?