1. Most Discussed
  2. Gainers & Losers

What's wrong with the company?

  1. How is it possible that this company has had such a massive increase in operating costs this year?

    Sure, turnover has increased 43.8% from last year, but operating costs have soared from $5.5m last year to a minimum of $8.3m this year (assuming a "small" loss of $100,000) - that's an increase of $2.8m or 51%!!!!

    It will be interesting to read the annual report to see where all that money was spent. Given the amount of media coverage of this company, it doesn't look like they spent it on publicity.

    Compare the result with IAS... they achieved a $7m profit on a turnover of somewhere between $230m to $250m (this is an estimate based on receipts from customers for 9 months as per the Commitments Test Entity - Third Quarter Report, annualised to 12 months), and are now talking about paying a dividend.

    Anyone have any thoughts?

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top