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Old 12-09-2008, 05:17 AM
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Default PSA Likely to be Sold...Then Out of Business?

Posted By: Eric B

Jay, dividends are not part of the calculation of profit/loss.

But that was a good comment. So I went ahead and reviewed their cash burn rate. Over the last 3 years the USED $10.5, $9.7, and $13.3 Million of Cash. Remove the dividends and they USED $8.3, $8.7, and $10.7 Million of cash. That still averages more than the $2 Million per quarter I first mentioned.

And since you brought it up, how often does a company suspended dividends and prevent bankruptcy. I'll tell you.....almost never.

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