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Re: homeworks post# 170180

Monday, 10/28/2013 10:04:09 AM

Monday, October 28, 2013 10:04:09 AM

Post# of 232509
I used to work for a company that was expanding very fast, our cash in hand were never above 100k. We had a credit line of 2m to keep our liquidity.

If you can reinvest all your money and still keep the return well above the cost for that money then I see no problem with that. To have big cash reserves while growing sounds like a horrible idea. Fact is that you can keep using your creditline and when you have a credit then having cash in hand generating no return is well..

On the other hand I agree with the non-audited numbers, I would like to see them. That would take a big chunk of the risk-premium away and send KMAG flying. Regarding their revenue sums, so far I do not have anything that causes doubt. IF I remember correctly, doubt were never casted against KMAGs financial numbers?