NOV 0.00% 3.2¢ novatti group limited

These type of entities scale really well so operating margins...

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  1. 4,317 Posts.
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    These type of entities scale really well so operating margins and operational leverage should consistently improve once the become profitable.

    But I think this early in the game profit margins are really asking the wrong questions.

    At micro cap level it is how good is the product? How strong is the top line powering?

    Of course to a point, you don’t want them burning massive amounts of cash - but so long as they can keep the growth I don’t mind them remaining cash flow neutral at this point in the game

    My bottom line with micro caps that are profitable is simple - if they start taking about dividends at this stage I am out as they are not thinking big enough
    Last edited by Andrew1234: 02/02/18
 
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