RE:RE:RE:RE:Kidl's motives here.kidl2 has a couple things right in this post. The SICPA deal was a gift. Shareholders thought it was a gift for them. It actually was, as the deal more than doubled the value of their shares. Quadrupled them even if they had been buying at 5 cents just before it started being discussed.
Those shareholders only still look at it as a gift if they were smart enough to cash out at 18 cents or more and never look back. Many of them did. Many more did not.
For Bruce and the rest of management, it truly was a gift, and a gift that keeps on giving. It meant they could cash in on the new cash pile with super high salaries for an extended amount of time. I would have preferred that they all get performance based incentives, like tons of free warrants and options at well above the then current share price, instead of mainly draining the cash pool directly with high salaries. In general, I think this is a red flag that should make stocks like this something to avoid when doing your DD, but on the other hand, even when the CEO takes only a buck in salary and the rest is performance based compensation, it doesn't always work out. Just look at MUX for example.
The other thing kidl2 got right is the $8 mil cash or less part. I wouldn't say with 'nothing' to show for it. Lets just say with nothing major contributing to the quarterly revenue totals. We are at the end of Q3 this weekend, so now we can all start speculating about how much the $8 million will have shrunk by the end of the year. It really is too bad that we won't find out that number before the end of April.
I am negative on the stock. I'm not long. I'm not bitter. I've made money on it this year, not held and lost like many others. I'm also not bidding at 7.5 cents. My brain tells me this should still be below the remaining cash per share level, for a little while longer, but my gut tells me the slide will continue unabated as the cash burn continues unabated. This will likely continue until such time as the company is able to announce something that can give longs and wanna be longs hope for a profitable future and actual earnings per share. Will that happen in Q4/17? How about in Q1/18 or Q2/18? Has anyone seen anything to suggest that a turnaround is imminent?
For now, because I'm still interested in the technology, I'll keep sitting on the sidelines and watching. Perhaps I'll get back in if one of you unexpectedly gets a margin call and the price is suddenly in the 6 to 7 cent range.
Until then, good luck longs.
kidl2, do what you feel you've gotta do daily if you wish. I think you are keeping new money out of it, and if that is your goal, so be it. Personally, I'll try to keep my 'warning' posts to once a month. This is just my perception of what has been going on this year and last year. I could be wrong. Do your own due diligence and decide for yourself.
If you are a true believer in EUO and management, then how can you go wrong buying in at cash or possibly slightly less than cash levels, and get the rest of the company for free?
If you don't see the company becoming profitable for a long time, and see the remaining cash getting smaller and smaller, then how can you even think about buying in or staying long at these prices today?
For some perspective, I first bought in at 18.5 cents. I last sold at 8 cents. I hold zero shares.
kidl2 wrote: I didn’t turn negative a couple of months ago. I turned negative about a year ago but that’s completely besides the point.
Yes, I became a bear and sold out for no other reason than management completely blowing it. I gave them nearly 18 months to capitalize on this SICPA gift. Nothing and absolutely nothing even remotely happened during these 18 months while cash burn went nuts. Nothing and absolutely nothing positive has happened in the now nearly 10 months following.
Some $16 Mil cash have gone to $ 8 Mil cash or less with absolutely nothing to show for.
The only reason I post negative news is because I can’t find any positive ones and neither can anyone else or so it seems.
Don’t make me the villain here. I don’t run this mob. Wake up and place the blame where it belongs!