RE:RE:RE:RE:RE:RE:RE:RE:A little rain on the "Roadmap" parade Ha! I wish I read your opinion before jumping into KNR. FWIW, most invested based on a product that the CEO pretty much promised was going to immediately fly off the shelf. It didn't happen like that, but I still like the investment and they have made major strides. It would have been nice to get in on that major dip you mentioned instead though!
v_guerriero wrote:
It's okay Cabbie.
He is not angry with me, he is angry at himself.
I publicly stated here that going all in on KNR at 3.40 was a dangerous bet. There were several cross holders of QTRH here with KNR. I strongly advised publicly against it.
The stock went from 3.40 to 0.80 in a matter of months.
I was a 100% correct in my call that they were running out of money and the financial statements showed that they were running close to the limits from a coverage standpoint. There was no more access to debt.
So they did a down round equity financing. They eventually found investors that provided financing at punitive levels at 1.50 / share and then a free warrant with a strike price of 1.75. When you did the Black Scholes modelling of that warrant they essentially did an equity raise at 1.00/ share. Below 1.00 is where the stock bottomed.
Now, he'll say that he averaged down and has broken even. When the reality is he could have 5-7X the number of shares he owns today if he just listened to me.
Now I hope for his sake that the company can generate cash and he can break even, but I suspect they are pumping the tires so hard on this one to set the stage for another equity raise.