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Last edited 3 years ago
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#Definition of a bad company? -
stale
Added 3 years ago

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Just looked at gross profit margin over the past ten years. Gone only way. Down. Market cap has followed. Decmil once had a market cap of $400m and gross proift margins of 30%. Gross proift margin in the last half year was 6%. Probably will be lower in this half year. Market cap now is less than $30m

Warren Buffett once said great, or very good, companies are those with pricing power. On the flip side, terrible (bad) companies do not. Falling gross margins suggests that Decmil is a pretty bad company without any pricing power (not a surprise). If inflation remains elevated this could be disastrous for Decmil

I am staying well clear of this ......