RE:RE:RE:Another SNN article quote, “UNDERVALUED”Thats a good point Bluesguy. I have no intent to say--- I told you so ---when i come back.
I am trying to provide facts to a crowd that is married to this stock, and base their comments not on the financials, as I suspect none of them even read the financials. I know that as soon as I saw a post saying something dead wrong ( in my opinion) that I would quickly respond, and wanted something that would stop me responding to each negative post. So I chose not to write until the stock was below $2.50.
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The problem is when do you know Sunniva is out of cash, and I am right ,or has lots of cash and I am wrong? I guess you have to wait till the first quarter is reported, and that is not until May 30, 2019.
I expect an attempt at another PP in February 2019, and that will require a press release in late January. By looking at the prospectus, we will know at that date, they are out of cash.
If there is no PP, then either the investment dealers could not sell Sunniva stock at any price, or they have plenty of cash on hand. Its simply a fact, whether they have cash on hand or not, and it will all come out in the wash.
Got Money- I have taken extended good sales into account in my negative cash flow calculation. I am just including the expenses related to those sales as well. .Also, don't forget the 3 million rent starting January, as additional cash out the door, thats not happening now.
A lot of the cash from the last pp went to pay off their bills. At march 31 2018 the financials showed over 10 million in accounts payable. They used the PP to simply pay their bills.
Each quarter they lose over 5 million. . Together with all the start up costs, a new warehouse, a new facility in Canada, new rent, a new distribution payroll, lots of new staff, I expect a net cash loss in the first quarter, that will far exceed their cash on hand.
See you again at $ 2.49 a share .
I have no idea when that will be ,but at some point the stock price will reflect the negative cash flows and fall to zero, so I suspect to be on this Board again before the end of the month.