Sinotel Technologies

[FFNow]

I am starting to learn and realize that in most cases, it is the nature of the industry and company which prevents it from being a worthwhile investment. In Sinotel's case, the problem of rising receivables and constant cash drain is part of the industry, and so one cannot "divorce" them both. If the business model is capital intensive, then there is likely no free cash flow present, and significant sums of money need to be employed just to keep up with the competition, or to just stay relevant!

So despite the company's pronouncement of contract wins or tie-ups, it's still very important to inspect the numbers closely. I've learnt, over the years, to avoid the glossy hype which generally accompanies press releases, and to instead just focus on what's important.

Thanks for the your insights MW. I'm also slowly learning how to look into different industries and how the mechanics of different industries affects the company involved in it. Cheers!

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Did a post on it: http://financiallyfreenow.wordpress.com/...t-sinotel/