The SCREENS.tv Blog
Focus: is cashflow an issue? (8)
Well, I was wrong when I suggested that Focus's Q1 results wouldn't reflect the disappearance of the wireless business; indeed, the quarter's headline loss figure was entirely down to an accounting adjustment made for just that purpose.
Even so, scepticism of Focus continues on Wall Street today after Friday's price plunge and massive trading volume. At around midday (U.S. time) today Focus stock had dipped to 30.12. That's very close to the 52-week low, and Focus's valuation is now a full 25 percent down on the 30 May figure.
Meanwhile, the influential Seeking Alpha Website makes a point that just could prove prophetic:
The company is clearly growing at exponential rates but an Achilles heel may be developing with the accounts receivable list growing and days sales outstanding heading the wrong way. A quarter is 90 days. So basically, on March 31 the company still had not been paid for sales from the last week of November 07.
I don’t care what you may say about cultural differences of operating in...China, all business cultures understand cash. This company may have a big problem.
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