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Re: Boiler_Master post# 51030

Wednesday, 04/17/2024 10:07:49 AM

Wednesday, April 17, 2024 10:07:49 AM

Post# of 52147
Boiler "Underlying value continues to improve in direct correlation with the fundamentals. But is does have a major impact on the short term and that impacts the company's ability to raise capital etc...."

The fundamentals involve many different things. One of them is the relationship between revenues and net assets. If revenues triple and net assets barely increase the vulnerability of the company jumps. Companies with very low net assets like this company don't usually thrive when rates of interest are high. It is now assumed it will take quite some time before the rate of interest which has been increasing recently will come down because inflation is higher than expected. This is not good for a company that finances its activities by borrowing money or selling stock because the profits are minuscule?

I suggest you do do some pondering as to why it is impossible for this company to finance the recent acquisition on decent terms. Is it because the potential sources of finance are run by stupid people who don't know how little risk it entails to finance this company or is it because they understand how high risk it entails?
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