GREY:SGLRF - Post by User
Comment by
sanityseekeron Jul 31, 2014 9:34pm
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Post# 22800859
RE:RE:Penny stock
RE:RE:Penny stockI'm fine with them being selective in their sales transactions, but when they have made sales, the proceeds haven't been put into the ground, and they only have increased debt to show for it. So effectively the asset sale is accompanied by fewer assets and more debt, and they become more rather than less leveraged balance sheet. There is no disciplined attempt at getting their financial position in order so they can turn things around and ensure a brighter future. Never bet on a turn around story, when the necessary actions are being put off and not given priority.
how is this not a concerning situation, and if you are divesting capital assets just to cover overhead and operating costs, should you at least also be trying to cut overhead costs. Perhaps reducing the head count of officers to a reasonable level would be a start. The biggest insult of all is that they restructured their stock based comp after the merger to get rid of the options in favour of RSUs that get them paid regardless of how much the share price declines. If the share price declined to 1.20 by the end of q2 2015, you'll lose about 30 percent on the year, and these guys will still get an equity based bonus. They have traded in being leveraged on upside in favor of getting bonused out even if they lose your money.
How comforting is that.