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Touchstone Strategic Income ETF V.SIO


Primary Symbol: SIO

The Fund seeks a high level of current income with a focus on capital preservation. The Fund invests, under normal market conditions, at least 80 percent of its assets in income producing fixed-income securities. This is a non-fundamental investment policy that the Fund's Board can change upon 60 days prior notice to shareholders. Income producing securities generally include corporate debt securities, mortgage-related securities, asset-backed securities, government securities (both U.S. government securities and foreign sovereign debt), and preferred stocks. The Fund will engage in frequent and active trading as part of its principal investment strategies.


ARCA:SIO - Post by User

Post by hedge8on May 01, 2015 8:50am
242 Views
Post# 23684188

Cash position looks pretty good

Cash position looks pretty good
Cash reported as of Feb 28 was $1.1 million. Add on the 6.4 million warrants exercised since, or another $1.1 million, and SIO had $2.2 million of cash as of Feb 28.

Since the last financing, after factoring out the impact of warrant exercises, SIO has been burning $155K per month. Assuming simply the status quo (i.e., zero growth) that gives 14.5 months of liquidity out to mid-May 2016. Assuming the remaining 7.525 million warrants are exercised (very likely) that gives SIO another 8.75 months, getting them to early Feb 2017.

Certainly there may be increased costs to support increased marketing efforts or expansion, but there will also be increased revenues from LG, Sasmung and likely new patent revenues to offset.

Samsung and international expansion are planned in second half of this year. Notwithstanding SIO's past track record of meeting timelines, I think the Samsung launch is very easily doable by early calendar Q4, and I guess we'll see on Europe as we get closer.

Bottom line - SIO clearly has enough cash to get them to these 2 big miles stones and, imo, at that point they likely get bought out.
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