RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Insolvency Filings Incoming? rwfresh wrote: I'm not saying anyone is wrong for seeking to invest in profitable companies. I am saying if you are invested in OG because you are betting it's going to be profitable in the next 10 years then you are not listening to what OG is saying. Read their financials. I quoted right from their last annual release. They are not pursuing profitability. They are pursuing growth and market share. That requires money, revenue. There can be no profit as every cent earned will be used as collateral to borrow more to throw at growth. This is basic business 101. Come on.
They aren't bad at communicating. You need to read their releases. You and the other poster believe something that is incorrect. That yesterday was some kind of critical day for OG. It was nothing of note. OG continues to pay the interest on the loan. No biggie. They continue on with their growth and expansion. They completed planned renos earlier than expected. Revenue will increase this past quarter because renos are done and there are less expenses now.
If you are unsure then check who is selling. The volume is light, it's small time weak hands selling. No execs or anyone from OG is selling.
You are misinterpreting what I wrote. I am not saying that the company's main goal should be profitability. It is obvious that the company is attempting to rapidly grown and therefore would invest in expansion. I am saying that the goal should be positive cash-flow and that the existing stores themselves should be profitable -- or at the very least, growing in revenue. This is clearly not the case. The company's growth has stagnated/regressed. They have not expanded in over four years. Their revenues have continued to shrink or stagnate over the past 4-5 years. The company has been desperately in need of financing for over 6 months now and has not received any. Because they are not at a stage where they are not self-sustainable, there is a substantial risk of insolvency in absence of additional financing. I do not believe they will be able to obtain this financing. So, the issue is not overall profitability -- instead, profitability/revenue growth within their existing streams of revenue.
The company does have a problem communicating information to its shareholders. In fact, I think the most likely scenario is that they breached the agreement. If they re-financed the debentures or prolonged the maturity date, I think it is likely that the company would have released that information. Why you think the absence of information is a good thing is confusing to me.