RE: More good news10 Oct 2019 18:24
Hi ABLE, I think that while there maybe concerns with quantitative easing and currency realignment (whatever that is, I genuinely don't know) I can't see how this effects TPG. We deal with large blue chip companies and national governments. Defense spending is reasonably recession prove anyway and this is our forte. Plus our forward order book is to die for. In addition we are cash positive with no debt and apart from all that we are well managed and don't seem to have put a foot wrong in the 3/4 years or so. The low share price sure beats the hell out om Kid!
This is the exact opposite of some of the recent company failures many of whom had large debt that they could not service. Many also had a high street presence with reduced sales. Either one or both was often the problem. Thomas Cook obviously but also a lot of catering outlets.
As an example I hold Gaming realms (GMR) it has a MC of 18 Mill of which 4 is cash. They are transitioning to licencing computer and phone games and so their revenue has been declining. This year end they may break even with 4 Mill in revenue (to be fair there costs have also been declining). So a games company can have an MC of 4 times it's revenue - even if it will be lucky to break even! TPG only has an MC of roughly the equivalent of our current years possible revenue even though there is a good chance of a profit this year to boot.