A Ticking Time BombSubscribe
I'm sure people have been talking about this on here at one point or another, so apologies for missing that if it has happened.
I am talking abouthere. Is a short the right play?
This company seems like it is dying financially, but lets face it,completely dominates the market of online-shopping. It has reported negative income last year after receiving 60 Billion in total sales, and has declining Net Income the past couple years. Can someone explain the capital structure of this company to me, and how a 60,000 top line turns net negative?
The company's chart seems constant over the past several months, despite the bull-market, but had that huge jump at the beginning of the year even after reporting a loss. The company's P/is absolutely horrible simply because there is no FCF. It seems that this company literally finances itself through large amounts of debt, and is highly leveraged, and basically spends all revenues on its costs which seem very high, and towards its debt. Hence why there is no FCF.
So does this company purposely not make any money, and is it leveraged so much that they can charge such cheap prices (thus capturing a large market share, becoming/holding the leader of online sales) and not have to worry about it?
Again, I am sure this has been a topic discussed at one time or another, and I apologize for being behind onas I have never really looked through their statements. But within minutes of looking through here, I really wonder why there are so many investors still in this company, why the chart has not moved, and why the price is still so damn high. To me, it seems that this is a highly inflated bubble that is ready to pop any minute. But on the flip side, completely dominates the online market so maybe this is why it has/will not move. So let me ask my fellow monkey's this:
Should I short the %#[email protected] out of or not?!?