RE:Sanity CheckThis company shouldn't be valued based upon quarterly statements(nor should any, really). You have found a reason to wonder why the share price doesn't relate to the balance sheet, I was in the same place in the springtime.
Read the News Releases starting with the RISE torch agreement from december/january 2019/2020.
Read the MD&A's since early 2019.
Check out the insider ownership levels.
Pay VERY close attention to Drosrite, PureVAP, HPQ, and Plasma Torch.
If I were you, I would recommend burying yourself in it for a week or two until you are an expert.
At that point, if you feel you can see the future as considerably brighter than it is, and enough to justify the (low) share price of $4.09, then become an owner. If not, move on.
If you require eps growth in order to invest, then keep them in mind and come back in a couple years and buy in, likely at around $70-$350/share.......
Cheers!
Rc0gburn wrote:
New to this board. Looking at price performance and market cap and shaking my head, $600million market cap on maybe $5million in revenues? Why is this stock worth $4.00/share???
Last few years the company is muddling along - as of End 2018 (last audited financials) it has an accumulated equity deficit of $50million.
Fast forward to early 2020
- CEO loans company a million in the midst of Covid at 12% with a 28c conversion price. Private transaction, not offered to shareholders....Converts and gets 3million shares (now worth 12million - nice trade)
-March 24 material news on an order - stock starts rallying
-March 31, extends maturity of other debenture ....stock continues to rally
And then in July 2020 from the companies MD&A/Financials:
The Company has incurred, in the last several years, operating losses and negative cash flows from operations, resulting in an accumulated deficit of $61,994,683 and a negative working capital of $11,157,110as at Q1 2020, (December 31, 2019 -$60,237,656 and $10,492,102 respectively). Furthermore, as at Q1 2020, the Company’s current liabilities and expected level of expenses for the next twelve months exceed cash on hand of $1,139,416 (December 31, 2019 -$34,431).
Really breathtaking to see the stock rally 10x while losing money, admitting they are running out of cash and that their expenses are likely exceeding their cash. And they bought HPQ in a private placement ! How How?
Appreciate any insights/comments. Forgive my naive comments if they are totally off the mark or I have missed material info
RC