OTCPK:UBNSF - Post by User
Comment by
Ponch73on Apr 29, 2017 6:57pm
114 Views
Post# 26183552
RE:Revenues and Huge Growth
RE:Revenues and Huge Growth Would love to know why you like this name. Based on your recommendation, I just spent an hour going through the MD&A and financial statements and found several things that I didn't like:
1. In the "Subsequent Events" section, we learn that management repriced their out of the money options to a $0.06 exercise price. Too bad, common shareholders can't take that same course of action.
2. Gross margins dropped substantially. The MD&A indicates that the company is reselling another service at a lower gross margin. In addition, we learn that the company has been forced to trade away a decent chunk of future revenues (25%) to finance additional fiber connections.
3. Company has been operating for 17 years, and still is no closer to generating positive free cash flow.
4. Revenues might be growing substantially, but off of an extremely small base. In addition, revenues per diluted share performance hasn't been nearly as impressive because of all of the equity and warrants that the company has been forced to dole out to stay afloat.
5. Company has one of the worst balance sheets I've ever seen -- the ratio of cash on hand compared to total debt is very poor.
I'm scratching my head and wondering what I'm missing here. Would you mind sharing with us what specifically has you so enthused about this company as an investment going forward?