forums.rs

Forums

Potential Acquisition - Update Thread is locked

Quick find code: 294-295-346-65774421

of 166
Quantum Evil
Oct Member 2013

Quantum Evil

Posts: 4,689 Adamant Posts by user Forum Profile RuneMetrics Profile
Original message details are unavailable.
@Hot Zone

No one cares about that gibberish. One man's bread is another man's poison. This applies to everyone. What goes around, comes around.

Besides, I think America vs China type of comments should not be allowed on the forums at all. They are more towards racial discrimination and fueled by politics instead of whats related to the game.

This is not some political forum for you to rant about what some foreign country like America is doing to some other foreign country like China, and vice versa.

First off, just because people have a low opinion of China dose not make them racist. In fact, the Chinese are a member of the HUMAN race, to divide Humans into "race" is not logical.

Inevitably, when there is a mutational perches of a company, it gets political, you just do not normally see it because it is not front and center. Politics is very normal in business. Where it relates to China, yes, you need to be worried about how their political and ideological views might affect a global social game like Runescape. To object to a country with a proven record of censorship buying a social game is correct and not racist.

17-Mar-2016 16:16:46 - Last edited on 17-Mar-2016 16:43:10 by Quantum Evil

Hot Zone

Hot Zone

Posts: 120 Iron Posts by user Forum Profile RuneMetrics Profile
If anyone was slightly confused and out of context was the post previously removed was just some examples on me commenting about past buy outs of companies and restructuring which is common practice from what I was reading/researching.

Since a lot of people were commenting on what if HQ was moved to China ect and was just purely interested if they really did do this.

A lot the talk on here can't really be stonewalled or blocked by the employees of Jagex whatever happens is going to happen at the end of the day because it's way above our pay grade and yeah that why I did remove my comments earlier.

Anyways just wanted to make a quick note on my thoughts about takeover ect putting my 2 cents in. Good for the Australians and NZ anyways if they put a server in China be a lot closer than America might finally be able to get 100-120 ping without the constant drop outs of the Australian servers. :)

17-Mar-2016 16:28:27 - Last edited on 17-Mar-2016 16:48:09 by Hot Zone

Averia Light

Averia Light

Posts: 28,508 Sapphire Posts by user Forum Profile RuneMetrics Profile
Original message details are unavailable.
Original message details are unavailable.
I would like to see Nexus0rigins views on this matter, he seems to make good sense with stuff of this nature. My opinion is that the majority of players seem to be overreacting without having done any actual research. The fact that the Financial Times referred to them as a "lossing" company isn't helping either.

If done properly, the company could end the year with over $1b in liquid assets. They currently have around $2b in assets, but have around $1b in liabilities, however their monthly revenue is more than substantial enough to cover the liabilities without having to liquidate any assets to cover the costs.

Apart from last year, the company has been growing steadily for quite a few years.


This is not the impression I got at all. The steel industry over in china is tanking due to there being massive amounts of surplus, and whatever other issues will magnify the problem of not being able to move inventory. I also saw they had a 600k is unfavorable cash flow - which includes cash and cash equivalents and non cash items are removed (aka the cash flows is your 'liquid' from operarions, investments and financing).

As far as switching industries, as you appearently appear to be suggesting, although it isn't unheard of, I would highly doubt that is the mining company's intent. I am curious why you would think this though.

And I hate to get into the mechanics, but revenue alone isn't enough to cover current liabilities. Remember revenue is made up of accounts receivable as well, and depending on their terms, the company may not see the actual cash for awhile. And I swear I'm not going to let her know all the pain I have known

17-Mar-2016 18:03:24

Averia Light

Averia Light

Posts: 28,508 Sapphire Posts by user Forum Profile RuneMetrics Profile
Quick down and dirty run down of cash flows, indirect method because it is the easiest

Net income

Remove depreciation/amortization expense because neither affect cash
Add or subtract receivables (increase in receivable means less cash flow, because when you take an AR you are effectively increasing net income without receiving the cash)
Add or subtract liabilities (increase in liabilities means more cash flow, because you are increasing expenses without actually paying cash)
Add or subtract 'paper' losses (aka the gains and losses incurred but not turned into cash. Gains would increase income, but not cash for example)

Etc etc...

Pretty much think of it in terms of everything that impacts the income statement but not cash and how you need to remove all noncash transactions. And I swear I'm not going to let her know all the pain I have known

17-Mar-2016 18:21:42

Averia Light

Averia Light

Posts: 28,508 Sapphire Posts by user Forum Profile RuneMetrics Profile
And watch me be wrong that is off the top of my head.

Really sure I'm right, but I always use the direct method and think in terms of that so it's hard to go back to the indirect method. And I swear I'm not going to let her know all the pain I have known

17-Mar-2016 18:24:45

Darth Exar

Darth Exar

Posts: 163 Iron Posts by user Forum Profile RuneMetrics Profile
@Quantum Evil

Please do not take my comment out of context and then generalize it to make yourself sound like some social justice warrior. My post was related to another set of posts which got removed and the explanation is posted after your post, which is more subtle and acceptable than the previous two.

I stand by my comment on the fact that nothing gives you the right to berate, belittle or criticize a country based on your nationalist or political views in this game or on these forums. There is a fine line between being racist and nationally / politically inclined while picking words and they often get mixed up easily and misinterpreted. I posted what needed to be posted and it was correct.

You are free to express your concerns about the game being made to follow certain protocols to ascertain the laws of some country, but that gives you no right to start berating or belittling or criticizing another country based on your own nationalist views. That's the gist of it all.

I've already mentioned my interpretation on the matter. There are many companies outside China that have Chinese ownership and they do NOT follow inland Chinese laws. It's a matter of how things get handled. As Mod Pips mentioned a keyword in his post "Reboot", I feel that IF Jagex ever gets forced to make changes to their game, they will probably create a new Asian version of RS for the Asian market with content that is more close to the cultural aesthetics in that region, instead of changing a game to displease its customers; a game that is already making money for them and their owners.

17-Mar-2016 18:34:08 - Last edited on 17-Mar-2016 18:38:13 by Darth Exar

Nexus Origin

Nexus Origin

Posts: 21,010 Opal Posts by user Forum Profile RuneMetrics Profile
Original message details are unavailable.
This is not the impression I got at all. The steel industry over in china is tanking due to there being massive amounts of surplus, and whatever other issues will magnify the problem of not being able to move inventory. I also saw they had a 600k is unfavorable cash flow - which includes cash and cash equivalents and non cash items are removed (aka the cash flows is your 'liquid' from operarions, investments and financing). The surplus iron ore is a result of the steel industry buying foreign ore instead of domestic ore. But that surplus can still be sold off to other countries, such as India. It might just take a bit longer to get rid of the surplus.

Original message details are unavailable.
As far as switching industries, as you appearently appear to be suggesting, although it isn't unheard of, I would highly doubt that is the mining company's intent. I am curious why you would think this though. Up until a few years ago, the company was known as the Shandong Hongda Technology Co., and dealt mainly in chemicals. For whatever reason, they took the company a different direction. This might be another one of those moments where they are looking to switch industries. Or they might just be purchasing the company as a cash flow.

Original message details are unavailable.
And I hate to get into the mechanics, but revenue alone isn't enough to cover current liabilities. Remember revenue is made up of accounts receivable as well, and depending on their terms, the company may not see the actual cash for awhile. We don't know what their current liabilities or revenue is, as the 2015 reports are not out yet. They will be submitted on March 26th.
_
_
_
_
_________
m
_________
_
_
_
_

McDelivery Now Available In Canada

McDonalds
-
I'm lovin' it.

17-Mar-2016 19:01:24

Quick find code: 294-295-346-65774421 Back to Top