Datasource2000

RBC Analyst Lowers Estimates of SunOpta to Reflect Short-Term Cost Pressure

<< Mr. Aaron says “management is showing prudent discipline with managing the balance sheet,” focusing on receivables and inventory while controlling capex. >>

This has been management's stated objective for over two years now.

But their actions speak otherwise. An imprudent and uncontrolled inventory build in the Fruit sector led to a huge writedown a year ago. The company continues to open credit lines, and then use that money to make acquisitions.

The inventory has become so bloated that the stated value of inventory (as of the last filing), is now greater than the market cap of the entire company.

Additionally, given that this is a food company, much of that inventory is perishable food items and/or is subject ot large commodity price swings.