GREY:ESPAF - Post by User
Comment by
JonathanJSmithon Aug 05, 2016 9:09am
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Post# 25113260
RE:Q2:Continued Fundamental Progress Strong 2 half Primed
RE:Q2:Continued Fundamental Progress Strong 2 half Primed
If you look at their income statement, they've invested heavily in their R&D (almost double to that of the previous year) and the CFO mentioned (on the CC) that they'll invest more heavily into R&D with the integration of the Arris team.
Next Q, you can figure $6MM (incl. ~$2MM from Arris) in revs and still a $3-4MM cash burn, if not more. You can expect the stock to trend lower until they announce their next customer. I'd probably be a buyer at around $1.50/sh if & when she get there. Don't forget, the only thing keeping their market cap so high is their cash hoard; as this dwindles, so does the company's value.
Cheers,
JJ