InvestorsHub Logo
Followers 64
Posts 8885
Boards Moderated 0
Alias Born 01/05/2009

Re: None

Sunday, 10/22/2017 9:59:53 PM

Sunday, October 22, 2017 9:59:53 PM

Post# of 30846
If I could bring up a point on the way credit works. As we all know when examining the financials you always want to proceed to the previous month and take note of the debt coming due. If you over pay that debt the portion that is overpaid becomes a credit. If this overpayment was the proceeds from the selling of equity minus administration costs to sell the equity then the revenue is equity produced and forwarded to a later date. Now additional debt can be taken on with this generated revenue. The additional debt due to the extra credit earned is also revenue after the cost of capital is subtracted. This extra revenue is your capital surplus figure given to you.

You would then take your gross revenue and minus the capital surplus and retained earnings to establish the true revenue that the company is generating.

All revenue is taxable but can be forwarded to take advantage of depreciation as it has been mentioned many times.

You can see the problem that will arise if revenue is not produced by synergy activity within the company it self not being dependent on the market capabilities to create the required revenue to unlock the value in the tax that is forgiven based on revenue tax owed and depreciation.

If current share holders are not willing to anti up and create the additional revenue needed too unlock the hidden value then the company is forced to sell there position for often ten cents on the dollar to meet the cashflow demand set forth by the leverage too create more revenue.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.