Posted On: 11/15/2013 12:33:33 PM
Post# of 1609
Re: StockWhisperer #668
3Q Financials
The most interesting thing from these financials is the company has a Derivative Liability of $75,431 .
This Liability has been recorded under Cash Flows for Operating Activities , Other Income/Expenses, and on the Balance Sheet.
Here is a basic article about Derivatives.
http://connect.mcgraw-hill.com/sites/00773287...atives.htm
To keep it simple. It looks like the company has taken some kind of Fair Value (this language is used in the 3Q report) Hedge. It could be on its interest rates (debt), current inventory, or future contracts.
There are also Cash Flow Hedges and Foreign Currency Hedges.
I went back over all reports until 2011 and never before has the company has a Derivative Liability. Penny stocks are not involved in the Derivative market.
Found it very interesting that management is using these types of financial instruments.
GLTA
The most interesting thing from these financials is the company has a Derivative Liability of $75,431 .
This Liability has been recorded under Cash Flows for Operating Activities , Other Income/Expenses, and on the Balance Sheet.
Here is a basic article about Derivatives.
http://connect.mcgraw-hill.com/sites/00773287...atives.htm
To keep it simple. It looks like the company has taken some kind of Fair Value (this language is used in the 3Q report) Hedge. It could be on its interest rates (debt), current inventory, or future contracts.
There are also Cash Flow Hedges and Foreign Currency Hedges.
I went back over all reports until 2011 and never before has the company has a Derivative Liability. Penny stocks are not involved in the Derivative market.
Found it very interesting that management is using these types of financial instruments.
GLTA
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