tag:blogger.com,1999:blog-4815867514277794362.post6910603937020763537..comments2024-03-08T06:18:28.125+11:00Comments on Bronte Capital: Nuskin - an MLM with wonky accountsJohn Hemptonhttp://www.blogger.com/profile/03766274392122783128noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-4815867514277794362.post-11853757735247966052014-09-07T12:38:21.232+10:002014-09-07T12:38:21.232+10:00Management has said that they plan to fix capital ...Management has said that they plan to fix capital structure by 3Q14, which is probably going to be a big upside catalyst here for the stock. It will put these amateur claims to rests about FCF and insolvency for a company that has zero net debt (net cash position). You will have to cover before 3Q14 dude.Tommy Tampersnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-44653310465792598392014-08-21T08:02:51.023+10:002014-08-21T08:02:51.023+10:00did they seriously just extend their boa line by 3...did they seriously just extend their boa line by 3 months... wow. reeks of desperation.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-51254372205656646972014-08-19T20:21:02.860+10:002014-08-19T20:21:02.860+10:00Looking at just the accounts, I don't think th...Looking at just the accounts, I don't think the cash flow generation is so clearly negative as you've stated it - although it certainly raises a lot of questions.<br /><br />Basically, what you can see is that cash flow was overstated in the last half of 2013, as accrued expenses grew far faster. I presume this was mostly incentives. These were then paid off during 1Q14.<br /><br />So a charitable interpretation is that over a long enough period, cash flow is ballpark where it was for the years previous.<br /><br />BUT: this increase in accrued expenses, and the capital expenditures, all correspond to a very large increase in sales and profits in second half 2014.<br /><br />This could be consistent with several different explanations - overly aggressive expansion, poorly timed capital investments - but might not indicate that the ability to generate cash flow has been seriously impaired (it seems to have been reasonably consistent before 2013/2014).<br /><br />[No comment on the rest of the business or the MLM aspect]Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-33607837000572697182014-08-19T17:41:31.978+10:002014-08-19T17:41:31.978+10:00If you could borrow at near 0% (i.e. Japan) you wo...If you could borrow at near 0% (i.e. Japan) you would tooAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-26655942962854468842014-08-19T00:19:50.266+10:002014-08-19T00:19:50.266+10:00A closer look at the 'cash at hand' reveal...A closer look at the 'cash at hand' reveals that is at their subsidiaries. Is it all repatriable? They are also borrowing in foreign currency in the same places where they claim to have cash (e.g. Japan). Doesn't pass the smell test.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-3922890260255776762014-08-18T23:56:08.223+10:002014-08-18T23:56:08.223+10:00so the blogger john is short nus, then i understan...so the blogger john is short nus, then i understand the tone..yawntexascanonball ?https://www.blogger.com/profile/12593814773233796653noreply@blogger.com