InvestorsHub Logo
Followers 5
Posts 101
Boards Moderated 0
Alias Born 06/07/2011

Re: stcks4prft post# 63521

Saturday, 03/25/2017 9:28:46 AM

Saturday, March 25, 2017 9:28:46 AM

Post# of 221164
While you have good concerns, let's think about this some more.

I have bought and sold companies in the past. A smart buyer will acquire a business that has revenues and more importantly profits (cash flow). Let's say a business is bought for $600k and generating $200k in cash flow. A smart arrangement would be for the buyer to pay the seller $200k per year from the cash flow the business is generating over 3 years or so to pay for the business (seller financing). No debt or dilution needed. Even if you have to dilute some to assist in the acquisitions, you could buy back the shares down the road with the cash flow generated. Cash flow is key to making this work. Then you do this again and again to acquire more businesses. Perfect growth plan. Albeit easier said than done.

Gotta love the fact that shares have been reduced 2.5b with a possible 2.5b reduction down the road. Still left with a lot of shares but no doubt heading in the right direction. The CEO could have easily just used these shares now to acquire but he seems to know exactly what to do. IMO