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Re: 4tg post# 229

Friday, 06/03/2011 10:42:09 AM

Friday, June 03, 2011 10:42:09 AM

Post# of 339
Financially SWSH looks bleak, and you have provided no indication of how/when it will become profitable (neither has Wayne).

No need to be a professor, this isn't rocket science. But it would be good to understand how to read financial & cash flow statements and balance sheets - then look at the mounting debt and see that buying small, non-profitable companies on a 50% cash / 50% stock basis is not a winning strategy to building a profitable company.

I'm not arguing that revenues won't be high, but the profit margin is so slim, the cash flow so negative (as in outgo versus income) and the debt so high that there is little hope of profit for at least 5 years.

As an investor, I have no desire to be long on a stock with no prospects of making a profit. There will be no major break-throughs along the way that suddenly escalate the potential either - just more buying of small mom and pop cleaning companies.

If you bought this because Wayne made money before - remember that those were different companies, and Wayne is in it for Wayne. Review the financials and business plan moving forward and ask yourself - how will they ever become profitable?

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