Another view of the reverse splitObviously the CEO and anyone holding this stock wishes that the big reverse split wasn't necessary. So why would they do it? Looks to me like Marc has given up on convincing Canadian investors that tech and hardware equipment companies are good investments. He wants to get to the US markets which have been heavily rewarding tech companies.
Before Siyata made the move, they must have considered their near term sales projections. Why would you do this huge reverse split unless you had some good news in the bag that could be released in the relatively short term and support the price. I have to believe that they expect sales to pick up dramatically.
Another thing I don't see mentioned is the uber low share count. Yes, I know they will issue more shares in the future and dilute BUT right now they have US$12 million bucks in Cash in the bank. They have 1 million shares outstanding!!!!! So just on cash, they have $12/share!
Let's assume that sales approach $20million bucks in 2021. That's 3X the market cap.
The big issue is WHEN will Siyata show a profit. If they can show a profit on increasing sales, this stock is going to move much higher. The economy doesn't look so great but have you noticed how many different delivery vans are clogging your neighborhood streets? What do you think is a crucial piece of hardware inside those vans? Communications.
Siyata isn't Zoom but they definitely have a piece of a booming sector. Online ordering and home delivery have been greatly accelerated by CV19. The fiscal crisis is going to be bad for First Responder sales because most municipalities are going broke but commercial sales to delivery fleets should be booming.
If Siyata has done any planning for this big move, we should see some big sales orders announced in the next few months.
Someday somebody is going to say, how could this company have been selling for a US$6 million dollar market cap? And it's $4million this morning. VERSUS $12 million in CASH sitting in the bank.