Ok, let's see how this goes for argumenting. Please feel free to jump in should you disagree with any of my views. I will not claim expert status on any of these matters. 1. The company have cash resources amounting to R4,245 2. Creditors = R3,706 3. Debtors = R7,280 4. Their profits are reasonable. 5. Given their cash on hand, and the fact that they enjoy almost double covering on their credits (from their debtors) combined with the fact that they could settle all current liabilities with cash, they are not looking like they will sink in the short term. However, and this is partly the reason I like them, since they are not currently geared to optimise the usage of their assets, they could easily absorb any hiccups with regard to acquisitions. Also, as soon as they become bigger (which is what they are attempting with all their aquisitions) they must start optimising their assets. When that happens, they should be even more profitable etc. At the end of the day, I have a small percentage of my portfolio locked into higher risk shares with a slightly longer outcome view on them. I consider this a medium to high risk investment, but for some reason I am not able to purchase the share at the current selling price because from my understanding the price difference is too large??? Kind regards Skouperd
