InvestorsHub Logo
Followers 1183
Posts 134793
Boards Moderated 3
Alias Born 08/27/2003

Re: hapslap post# 9184

Tuesday, 04/12/2005 4:55:43 PM

Tuesday, April 12, 2005 4:55:43 PM

Post# of 19552
Fascinating. Looks like from that blurb that money can in fact come back.

The dilution could simply be (yeah right) all the ramp up of production. As a small business owner myself, I can attest that while a fat cash real profit hits the bottom line, any growth eats that up fast in the form of inventory. Example - if there's $10 mil in sales and $3 mil in profits then $20 mil in sales are expected, an extra $10 mil in inventory may be needed on hand at all times (not counting extra money for employee salaries, etc.).

Most people don't understand that. Last year one of my biz partners was whining because we kept expanding, I kept reporting profits, employees kept making money and getting bonuses and being happy and wanted to know why the f*ck more money had to be loaned to the company when we weren't even getting paid.

Raw