CM8 5.41% 3.5¢ crowd media holdings limited

Ann: CM8 expands range of professional services Q&A apps,SEQ-CM8.AX, page-39

  1. 8,662 Posts.
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    ''Nothing matters until that debt is paid off!''

    yifuj, imo you are right on the ball with the $19m debt concerns while a company is still in the early stages of growth.

    Using cashflow for expansion vs paying down high interest rate debt

    Launching low cost or minimal cost highly speculative apps may not necessarily deliver the revenues and earnings the company anticipates ( concept of spending money to make money)

    Rapid expansion in a range of business activities( acquisition ) requires proper integration of all businesses in their chosen market segments

    The use of funding- debt for acquisition can led the company to being hamstrung with high debt levels and a high interest rate environment

    This is what occurred with Destra and many other techs

    This is my well balanced and realistic opinion only - Not Advice

    DYOR
 
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