TSXV:RHT.H - Post by User
Post by
Aei773ouon May 22, 2020 1:30pm
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Post# 31061761
Wishful-thinking is useless but reasonable scenario make the
Wishful-thinking is useless but reasonable scenario make theday. There are three scenario for the financials (regardless of what is said in the Webinar) and I attempt is use the tone this management resort in their press release.
1. Revenue less than 400k and no onboard btw Jan and March. Cash flow for operations is not positive yet but is seen to be achievable in coming quarters. This is the worst case any investor can think of. The management must have screwed up badly and execution is a fiasco. SP will reach new all time low. Personally I cannot believe the management will disappoint in such a way. But then what do I know.
2. Revenue a little better than 400k but nowhere close to 50%-100% increase per old guidance. Some onboards added but not materially substantial. Cash flow is negative but close to become positive. And as usual they never tell you the onboard number as of the day the report is written.
3. Revenue surprises to the upside and surpass 600k. On-board is still on-going and is “ramping up” as the lockdown eases. Cash flow positive is a near term achievable target.
In my past analysis it can be somewhere btw point 2 and 3. Even then SP will shoot up .
As for the webinar, I hold my breath and hope there is not another shoe to drop, like explaining why there is no progress in onboards, why there is a delay in operation for the call centre, interruption in recurring revenue etc... as these all point to #1 above. Otherwise, the Webinar could be definitive for an optimistic projection to the end of the year and beyond. Take Hearts all.