Cash flow is king

A quick line in a follow up to my earlier piece entitled "shares to avoid at all costs":-

http://michae1mouse.blogspot.co.uk/2017/07/shares-to-avoid-at-all-costs.html

I've been informed that Winnifrith has written a piece about Trakm8 where he says that the business is bad because:-

"It is bad becuase it just does not generate free cashflow."

and later

"The fact is that TrakMK8 is still not generating free cashflow and that makes the valuation absurd."

Trakm8's valuation is around £33m.

Let's address this issue.

Firstly, Trakm8 didn't generate Free Cash flow this year largely because of heavy investment and delayed contracts. However, let's see what happens next year and not forget that they had good cash generation in the prior year enabling them to pay a 2p dividend.

I'm not sure what Winnifrith's beef is with Trakm8, perhaps they refused to turn up at one of his silly insignificant investor shows? Who knows.

Anyway let's expose the duplicitous and hypocritical little berk for what he is.

A question for Winnifrith. What is the Free Cash Flow at these companies? OptiBiotix, Premaitha Health, Big Sofa Technologies and Concepta?

I'll save you some time. They are all cash guzzlers with sod all revenues on ludicrous market caps. Yet good honest Winnifrith is pumping these companies on behalf of his organ grinder Adam Reynolds for all his worth. Have you no shame Winnifrith?

OptiBiotix (Opti) - Cash guzzler, revenues £288,000, market cap. £53m
Premiatha (Nipt) - Cash guzzler, revenues £3.1m, market cap. £32m
Big Sofa (BST) - Cash guzzler, revenues £757,000, market cap. £15m
Concepta (CPT), Cash guzzler, revenues £3,730 (that's not a joke btw), market cap. £14.5m.

In your words Winnifrith, it makes them "bad companies on absurd valuations".

Just by way of comparison

Trakm8 (Trak) - Cash generated from operations £700,000 and £4.5m (2016), revenues £27m, market cap. £33m.

No wonder Winnifrith is a failed investor who's ended up pimping shares for others. I rest my case m'lord.

Of course, this is AIMHO and I'm sure Winnifrith is a wonderful honest delightful human being ;)