Working backwards with the reported Q numbers it a
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Posted On: 03/15/2018 9:27:38 PM
Working backwards with the reported Q numbers it appears that the company purchased 4000 units at $24 each and "sold" them for average of $238 each (assuming no meaningful revenue came from digital marketing business). Selling them domestically on credit.
What Berman really needs to do in order to raise cash is sell internationally since everything should be Cash In Advance at this point.
But can he sell the units for $238 each and get a customer to absorb 500-1000 units? The chances of Onci getting those units returned are a lot lower than the domestic customers. If I were him, which I'm not, I would offer the international customer a huge volume discount, maybe as low as $125-$150/unit in order get necessary upfront cash. He is not going to have pricing issues with domestic clients since they will never compete for business against the international client.
Take the emotion out your responses. The stock price is going to do whatever it wants to do. My years as a corporate credit manager enables me to decipher numbers and arrangements that many will plain overlook. Again, it's nothing personal.
What Berman really needs to do in order to raise cash is sell internationally since everything should be Cash In Advance at this point.
But can he sell the units for $238 each and get a customer to absorb 500-1000 units? The chances of Onci getting those units returned are a lot lower than the domestic customers. If I were him, which I'm not, I would offer the international customer a huge volume discount, maybe as low as $125-$150/unit in order get necessary upfront cash. He is not going to have pricing issues with domestic clients since they will never compete for business against the international client.
Take the emotion out your responses. The stock price is going to do whatever it wants to do. My years as a corporate credit manager enables me to decipher numbers and arrangements that many will plain overlook. Again, it's nothing personal.
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