Replies to post #275742 on Sulja Bros. Building Supplies, Ltd (SLJB)

[EarnestDD]

Those financials that were posted were just too too laughable.

To me they showed the complete ineptitude of their understanding of accounting.

[UgottaSell]

a 30.6% pre-tax margin?

One of the red herrings for fraud is a company that claims extraordinary returns for its industry.

Home Depot has an EBITDA margin of 12.10%
Lowes has an EBITDA margin of 13.19%

GOOGLE has an EBITDA margin of 39%, and they have greater intellectual capital than just about any company. Apple has an EBITDA margin of around 17%. In other words, Sulja, a lumberyard, was claiming margins more in-line with those of GOOGLE than Lowes or Home Depot.

Wow, Petar really is not very knowledgable about business. If he had ANY IDEA WHAT HE WAS TALKING ABOUT, he would have at least made the pro formas believable. I hadn't even bothered looking at them until now and I must say: I am SHOCKED that so many people fell for this scheme.

[frenchy]

8K = 3/4 million dollars?

[EarnestDD]

Why $243,000 on interest? I thought they had paid off their debt with the cash from the nominee accounts?