SSC Security Services Corp Ordinary Shares V.INP

RE:RE:RE:RE:RE:RE:INPUT CAPITAL CORP. MONTHLY UPDATE - FEBRUARY 2014

[Dutchie2400]

Thanks for the comments.  INP says theire pool is 5,900 farmers.  Their due diligence requires that they obtain all sorts of financial information and they will be weary of overextended farmers.

Management granted themselves 10 million shares as founders at $999.  Yes, that's right $999.  For a total float of around 39 million that's simply too much.  Vesting takes place from 6 months to 18 months from issue date so they are all vested.  They also granted themselves over 3 million shares as employees so 1/3 of the float are insiders that got the shares for nothing.  You can't get a decent EPS with that many freebie shares.  The selling pressure will be huge overhead and there is virtually no volume.

One of the reasons cited by INP for the financing is to pre-buy fertilizer at big discounts (so INP says).  That window is already closed for 2014.

The 30-40% return cited for their financing doesn't hold up when prices are low.  Farmers won't pay that kind of interest.  The larger farms have advisors to help with marketing and it doesn't take a genius to figure out that their rates are too high.