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  1. MattThomas

    Help Me Understand Public Companies

    I noticed that too, not at all encouraging. All that "Goodwill" suggests is that they paid a premium for another company that might have some "brand equity". Pretty scary knowing that these acquisitions have given them very little.
  2. MattThomas

    Help Me Understand Public Companies

    I looked at "Total Debt", and "Total Equity" in my calculations. I didn't include current liabilities like accounts payable, although I could have. Shareholders Equity would be included in the denominator of my calculations. But you do raise a good point in that the company could also stay...
  3. MattThomas

    Start up Money !!!

    Yes that is exactly what I was asking. It doesn't make any sense to sell a business for the same amount as the yearly profit. What about the profits from each successive year? That should be accounted for in the price. If it were me, and this is based on very loose calculations, but I'd...
  4. MattThomas

    Help Me Understand Public Companies

    No, you're not really missing anything at all. You raise a lot of good questions. A lot of companies can stay afloat this way if they have enough debt to finance this lack of net income. While I'm not sure what the industry standard is, the Total Debt to Equity Ratio is 1.4, so for every dollar...
  5. MattThomas

    Too many things to sell!

    I like your idea of starting a larger niche store. Maybe taking on a "carry all" type of strategy down the road might be a good idea as you continue to grow, but perhaps getting good at designing ads and marketing campaigns for a smaller set of products would be better, first.
  6. MattThomas

    Start up Money !!!

    Wouldn't the lease just carry over to the new business owner regardless? You said he is selling the business for 1x the profit...so is the annual profit 50k?
  7. MattThomas

    Cost of Google adwords?

    WEB/DIGITAL 
    Depending on the keywords you are competing on, you may have to start out bidding a lot higher on some of the terms. The more competitive, the more you'd have to spend (in the beginning). Why? Google, in part calculates your quality score depending on your Click-Through-Rate. Generally, if you...
  8. MattThomas

    Equity split

    I think this is excellent advice. It is a great way to plan for contingencies for how much actual work is done, and makes it fair for the individual who ultimately does more work.
  9. MattThomas

    There will be blood

    OFF-TOPIC 
    I don't think his desire success didn't play a factor, I think it played a huge factor...but that coupled with his desire for power and his hatred of others corrupted him the more successful he became. Also, the fact that the one person he did actually love, his son, went deaf made Plainview...
  10. MattThomas

    Start up Money !!!

    If it were me, I'd view my business as a vital sellable asset for when I'd retire, and I'd want to sell it for as much as possible. I wouldn't want to just get rid of it as quickly as possible, I'd want to build as large a retirement fund as possible. What are the Net Cash Flows for the...
  11. MattThomas

    Must have resources

    Google Analytics and Gmail I find extremely useful. I LIVE by Remember the Milk, as it gives me an easy way to manage my todo list. Not sure if we are only naming internet resources, but I can't live without my laptop.
  12. MattThomas

    There will be blood

    OFF-TOPIC 
    Interesting, as he also said to his "brother" at one point that he hates people and always sees the worst in everyone. I also found his reaction to his competitors interesting. The bigger oil barons who "told him how to raise his son"--I know he was insecure about how he raised HW, but do you...
  13. MattThomas

    Start up Money !!!

    So does the owner want to sell because of decreased revenue? What is the net cash flow for the past year? For the past few months? Even at 200k per year, EVERY year, 50k seems like an extremely cheap price. If it were me, this would be throw up some red flags. Again, do you know why the owner...
  14. MattThomas

    What’s your opinion of social networking sites?

    WEB/DIGITAL 
    I think any forum that allows you to effectively interact with potential customers (or like-minded people) is an avenue definitely worth giving a try. I personally have little experience using social networking this way, but I think it is still relatively new where a lot of opportunity still exists.
  15. MattThomas

    Start up Money !!!

    Where did the owner come up with the sale price that he did? Even if the revenue is there, there HAS to be some reason that the price is so low? Forget about revenue for a second and lets talk about risks. What if there are license or permit violations? Pending lawsuits? Bad recent publicity...
  16. MattThomas

    There will be blood

    OFF-TOPIC 
    I don't think the movie was anti-capitalist, but rather it was pro social responsibility. Money and profits are fine as long as the company contributes positively to the community, something Daniel Day Lewis did not do (or faked doing).
  17. MattThomas

    New construction financing...

    REAL ESTATE 
    I'm guessing the contractor would have to be willing to...ahem...exaggerate the price to the banks so the bank can lend out more money than otherwise needed. I suppose as long as the contractor is willing to exaggerate the price, it is probably difficult to prove that any dishonesty even took...
  18. MattThomas

    There will be blood

    OFF-TOPIC 
    I loved it. I think it is serves as a great story about business ethics and being a good corporate citizen...something that Daniel Day Lewis didn't really do. But I also think it has an interesting message about being cut-throat and very competitive. He identified an untapped area of...
  19. MattThomas

    Start up Money !!!

    I think figuring out why the owner wants to sell at such a discounted price is a really important question to answer before proceeding. Do you know why he is selling for this low of a price?
  20. MattThomas

    Mortgage rates fall to 5.12%

    REAL ESTATE 
    :) Still, it is a concern is it appears even our government hasn't fully learned its lesson--BE CAREFUL WHEN LENDING. Just because you can print money doesn't mean you have the right to throw it away :(

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