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Potential Acquisition - Update
Quick find code: 294-295-346-65774421
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nobody is going to invest 300M on a vending machine and just let it idle. Unless idling means a profit of $8m per year for doing nothing other than owning it.
nobody is going to invest 300M on a vending machine and just let it idle. Unless idling means a profit of $8m per year for doing nothing other than owning it.
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McDelivery Now Available In Canada
McDonalds
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I'm lovin' it.
23-Mar-2016 06:37:07
Original message details are unavailable.
Original message details are unavailable.
nobody is going to invest 300M on a vending machine and just let it idle. Unless idling means a profit of $8m per year for doing nothing other than owning it.
Well, if (big if here) they were already 50M in the hole with a negative cash flow of 600K prior to this deal, it'd take almost 7 years to get out of the hole (factoring in the negative cash flow). No company, especially an investment company at that, is going to sit and wait 7 years to break even. If they did, I would genuinely be surprised. "Revenge...is like a rolling stone, which, when a man hath forced up a hill, will return upon him with a greater violence, and break those bones whose sinews gave it motion."- Jeremy Taylor
Original message details are unavailable.
nobody is going to invest 300M on a vending machine and just let it idle. Unless idling means a profit of $8m per year for doing nothing other than owning it.
Well, if (big if here) they were already 50M in the hole with a negative cash flow of 600K prior to this deal, it'd take almost 7 years to get out of the hole (factoring in the negative cash flow). No company, especially an investment company at that, is going to sit and wait 7 years to break even. If they did, I would genuinely be surprised. "Revenge...is like a rolling stone, which, when a man hath forced up a hill, will return upon him with a greater violence, and break those bones whose sinews gave it motion."- Jeremy Taylor
23-Mar-2016 06:41:53
Original message details are unavailable.
Original message details are unavailable.
Original message details are unavailable.
nobody is going to invest 300M on a vending machine and just let it idle. Unless idling means a profit of $8m per year for doing nothing other than owning it.
Well, if (big if here) they were already 50M in the hole with a negative cash flow of 600K prior to this deal, it'd take almost 7 years to get out of the hole (factoring in the negative cash flow). No company, especially an investment company at that, is going to sit and wait 7 years to break even. If they did, I would genuinely be surprised. They still have plenty of inventory. The $50m loss was a result of lack of overturn on their inventory, not to mention they still have plenty of international buyers lined up for their inventory, so Jagex wouldn't be their only source of revenue.
By moving a substantial portion of their cash out of China and into the international markets, they can protect that money from the impacts of the falling yuan. At the same time, they're earning profit on the cash they moved out of China (from Jagex). And in a few years time, they can sell the stock to another party to recoup their initial investment in Jagex.
Original message details are unavailable.
Original message details are unavailable.
nobody is going to invest 300M on a vending machine and just let it idle. Unless idling means a profit of $8m per year for doing nothing other than owning it.
Well, if (big if here) they were already 50M in the hole with a negative cash flow of 600K prior to this deal, it'd take almost 7 years to get out of the hole (factoring in the negative cash flow). No company, especially an investment company at that, is going to sit and wait 7 years to break even. If they did, I would genuinely be surprised. They still have plenty of inventory. The $50m loss was a result of lack of overturn on their inventory, not to mention they still have plenty of international buyers lined up for their inventory, so Jagex wouldn't be their only source of revenue.
By moving a substantial portion of their cash out of China and into the international markets, they can protect that money from the impacts of the falling yuan. At the same time, they're earning profit on the cash they moved out of China (from Jagex). And in a few years time, they can sell the stock to another party to recoup their initial investment in Jagex.
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_
_________
_
m
_________
McDelivery Now Available In Canada
McDonalds
-
I'm lovin' it.
23-Mar-2016 06:47:18
Original message details are unavailable.
Original message details are unavailable.
They still have plenty of inventory. The $50m loss was a result of lack of overturn on their inventory, not to mention they still have plenty of international buyers lined up for their inventory, so Jagex wouldn't be their only source of revenue.
Here's the thing about cash flow, Nexus: it measures how much money is being moved from A to B-Z and vice-versa. If it's positive, your assets are having an increasing value. Seeing that the cash flow is negative, it means that their value is decreasing, making it harder for said company to participate in business (i.e. pay expenses for running your business). Inventory means diddly **** if you can not "convert" it to cash.
Your argument would be true if they didn't have the cash flow problem. Your argument might hold more weight if you had actually read the 2015 financial reports, which aren't going to be submitted for another 3 days.
Original message details are unavailable.
They still have plenty of inventory. The $50m loss was a result of lack of overturn on their inventory, not to mention they still have plenty of international buyers lined up for their inventory, so Jagex wouldn't be their only source of revenue.
Here's the thing about cash flow, Nexus: it measures how much money is being moved from A to B-Z and vice-versa. If it's positive, your assets are having an increasing value. Seeing that the cash flow is negative, it means that their value is decreasing, making it harder for said company to participate in business (i.e. pay expenses for running your business). Inventory means diddly **** if you can not "convert" it to cash.
Your argument would be true if they didn't have the cash flow problem. Your argument might hold more weight if you had actually read the 2015 financial reports, which aren't going to be submitted for another 3 days.
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_________
_
m
_________
McDelivery Now Available In Canada
McDonalds
-
I'm lovin' it.
23-Mar-2016 07:11:40
Original message details are unavailable.
Your argument might hold more weight if you had actually read the 2015 financial reports, which aren't going to be submitted for another 3 days.
IF it's not available, then why discuss it? "Revenge...is like a rolling stone, which, when a man hath forced up a hill, will return upon him with a greater violence, and break those bones whose sinews gave it motion."- Jeremy Taylor
Your argument might hold more weight if you had actually read the 2015 financial reports, which aren't going to be submitted for another 3 days.
IF it's not available, then why discuss it? "Revenge...is like a rolling stone, which, when a man hath forced up a hill, will return upon him with a greater violence, and break those bones whose sinews gave it motion."- Jeremy Taylor
23-Mar-2016 07:13:46
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