AI
Tuesday, December 14, 2010 11:53:01 PM
Great, thanks for the info. I've been trying to find something I don't like about the company, but everything looks pretty good.
Cash obviously has been a problem, but it appears they have it solved now via the non-dilutive financing from the 3M line of credit and the .7M loan. It looks like they've already drawn about 1.02M of the 3M, and then when you add the .7 from the Chinese loan, that gives them 1.72 in cash this quarter, which is plenty.
They've also been more efficient at collecting their accounts receivable, and stated in their last report they expect that better collection efficiency to continue into this quarter. Do you know if they account on a cash or accrual basis? If cash, we could be in for an extra 2m in income if they're able to collect the rest of the ARs. It's possible considering they collect 1.4M last Q.
Speaking of accounting, that's the only real negative I've been able to find. I wish they made it a habit of having their fins audited with a more respectable institution.
I also think it's a safe bet now. I agree with the many out there who are calling the U.S. markets overbought. SKBI, with a Beta of -.24 appears to be a good one to jump into now as it typically performs better once our markets downturn.
Its RSI is putting in long-term higher highs and it appears to have formed a pretty healthy up trend. Now appears to be a great entry as its near its trend line support.
What are 3 things you don't like about the company?
Cash obviously has been a problem, but it appears they have it solved now via the non-dilutive financing from the 3M line of credit and the .7M loan. It looks like they've already drawn about 1.02M of the 3M, and then when you add the .7 from the Chinese loan, that gives them 1.72 in cash this quarter, which is plenty.
They've also been more efficient at collecting their accounts receivable, and stated in their last report they expect that better collection efficiency to continue into this quarter. Do you know if they account on a cash or accrual basis? If cash, we could be in for an extra 2m in income if they're able to collect the rest of the ARs. It's possible considering they collect 1.4M last Q.
Speaking of accounting, that's the only real negative I've been able to find. I wish they made it a habit of having their fins audited with a more respectable institution.
I also think it's a safe bet now. I agree with the many out there who are calling the U.S. markets overbought. SKBI, with a Beta of -.24 appears to be a good one to jump into now as it typically performs better once our markets downturn.
Its RSI is putting in long-term higher highs and it appears to have formed a pretty healthy up trend. Now appears to be a great entry as its near its trend line support.
What are 3 things you don't like about the company?
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