Mike Cleaver wrote:Say what you want about NewCap but it's the one corpse which actually deals in cash money, not a pile of paper that could collapse at any minute.
"Cash instead of paper" isn't quite accurate. Just because an engineer can buy what he wants doesn't mean they are paying cash.
Newcap has a $90 Million revolving line of credit and another $90 Million fixed credit that was needed to buy Toronto & Vancouver. At the end of 2014, they had $365 Million in assets and $139 Million (out of the $180M available) in debt. Their own statements say they do not carry a positive cash balance and run all operations through their credit facilities. It cost them just over $6 Million in 2014 in interest to service that debt (nothing really at today's low interest rates and their revenue of $154 Million). The whole company, buildings and equipment are up as collateral...that's the collapse at any minute part. As a public company, that information is just a Google away on their own website.
I'm not blathering on saying it is a bad thing, it may not be all that different than the other companies.....but it certainly isn't a "cash instead of paper" company. They are running the shop with one big credit card at around 4% interest. That includes paying themselves and their shareholders.
The 2015 statement will show if they managed to take a bite out of that debt and if Toronto & Vancouver are paying off.