Replies to post #45956 on Savvy Trades and Investments

[littlefish]

But look at the 'quality' of the balance sheet and earnings during the whole time (even in 2016). It is getting worse with time IMO in terms of paying down debt, increasing tangible assets and increasing free cashflow.

If you wanted to be devil's advocate you could say they only made net $0.24/share on the 12 months so are kind of expensive at $2.40 a share (let alone $8+) given they have declining net margins, increasing liabilities and interest expenses and increased SGA costs with 2 quarters in a row of losses and not during their typically seasonally weakest time of year.

Would you pay a PE of 10 given they have increasing debt costs, increasing overhead and declining revenues with the last 2 quarters being losses plus trades multiples above tangible book value?

And that 10 PE is if the stock is at $2.40...

So by that measure the company is wildly overvalued. Just depends on how U want to look at it (I don't like either measure for the record since it is just looking at 'earnings' and there are more important things to pay attention to on the balance sheet IMO).

Hopefully the shorts get squeezed and give it a pop near term so people either way can decide what they want to do.

All IMO only. Good luck.