bbilly, burn rate is still used in companies that generally dont have income or their income is substantially smaller than their payables. Drug companies comes to mind, but also dot com companies that expected to some day, somehow create income on the web also used that term.
Not to debate words with you, but since I took the rest of the day off and nothing is happening, I figured Id reply:
burn rate: For a company with negative cash flow, the rate of that negative cash flow, usually per month.
IMO, this really doesnt apply to BSTI since their reported sources vs. uses of cash have been about even. With a company that is spending millions on say, developing a cure for cancer, their uses of cash provide a need to obtain more sources for new cash even on a monthly basis while trying to gain fda approval.
With BSTI, it is harder to determine a "tyfoonish date of demise" cause the cashflow has improved steadily over the last 2 years, but has hovered around breakeven over the last few quarters(btw, tyfoon predicts bankruptcy about once every 3 weeks and im sure someone believes him enuf to sell). I tend to look at ACCTS REC, SALES, ACCTS PAY, PREFERRED STOCK, potential lines of credit, management direction on obtaining revenue.... Id say that if BSTI does absolutely nothing for the next year, it could easily lingre on dilution and other sources of financing. Hopefully, BSTI plans to do more than just lingre. Go back to the days of Emd and see what kind of financial shape they were in back then - they are much stronger now - even in the 8 cent range. To calculate approximate time to demise in a company that is about break even isnt real. There are too many options in a public company.
it only gets better.
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