Pounce Technologies Inc. V.POI.H

RE:Does anyone know why the stock has fallen?

[Ranger56]

A suggestion why..read the latest quarterly financial statements:
Some key numbers: Cash: 6.2M, Rev: 0.45M, Begin Cash: 9.2M, End Cash: 6.2M, therefore Cash burn: 3M. The revenue vs cash burn gap is huge. At current rate..run out of cash in 2 quarters.
This is offset to some extent as they are growing at fast clip, signing up many new clients, but off a very tiny revenue base.
The question is can they grow fast enough, at extreme rates, over next 2 quarters to offset cash burn. Not likely, as the company in email response as posted, said they need to raise as much cash as they can and invest in the business as much as possible.
The management make many bullish and confident remarks but fail to guide as to when they are expected to reach breakeven.
The issue is when raising cash to survive in somewhat dire circumstances (ie. running out of cash at a fast rate), it is more often than not negative for shareholders.
Bruce Campbell suggests they will be taken over at some point. But smart buyers wait till distressed to get the best deal possible.
So after being hyped by an analysts like Bruce Campbell to higher levels, who fails to inform shareholders of the financial realities, when realized, a large and painful decline occurs.