We have only been getting part of the story from management leaving investors to speculate and draw their own conclusions on the other part. It hasn’t been good disclosure IMO.
At the end of June accounts receivable exceeded payable by $3m and from Doms email seems like this gap is increasing with the growth of the media company.
It’s not uncommon in the advertising world for companies to splurge on advertising in their dying days in an attempt to stay afloat and accounts can go unpaid. It’s a separate issue but let’s hope the $450 with satabank is safe.
Many of CM8 clients appear to be bluchip but we also don’t know how many dodgy ones they have on the books.
CM8 need a strong and disciplined credit dept if they don’t already have one. Its better to refuse business than buying business by extending credit to shakey companies.
CM8 Price at posting:
3.3¢ Sentiment: None Disclosure: Held
