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0 pointsBoiledCabbage2y ago0 comments

Which if I recall correctly they are only profitable due to a one time revenue boost right of something like hundreds of millions ?

And that one time "revenue" boost was that a company they own they are asserting is now valued more than last year. And they are calling that "revenue".

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lhorie2y ago

No, it's operating profit.

kiba2y ago

I took a look at a fool article. If you exclude the unrealized return from an investment they made, their profit are in the single digit millions. Not really confidence inspiring, but maybe I am wrong and that they could indeed make their business sustainable.

Dylan168072y ago

"could indeed make"? What's not sustainable about that level of profit? And aren't they still spending a lot on expansion?

kiba2y ago

It implies that their margin is really low. We're talking about revenues in hundred of millions and they're only able to make single digit millions.

Next quarter, their margin might entirely be wiped out by a slight downturn in business. If they could increase their margin and make profit consistently, then I'll change my mind.

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lhorie2y ago

No, it's operating profit.

kiba2y ago

Dylan168072y ago

"could indeed make"? What's not sustainable about that level of profit? And aren't they still spending a lot on expansion?

kiba2y ago

It implies that their margin is really low. We're talking about revenues in hundred of millions and they're only able to make single digit millions.

Next quarter, their margin might entirely be wiped out by a slight downturn in business. If they could increase their margin and make profit consistently, then I'll change my mind.

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