CO2 GRO INC: Two Problems...To readers: my weird looking nickname is Go With the Momentum; I am a former institutional PM that managed growth/momentum investing with lots of short term trading.
I have been following this company for ~3 months and the problems are: i). If the technology is so good and there is a big, fast payback on using their system, why are they not making sales/new orders on a daily/weekly basis??? As another post mentioned, only two clients paying right now. THIS IS A PROBLEM because mgmt has been going around the street for ~1 year now saying what a great technology thay have and how the market potential is huge.
ii), They have hardly raised any capital since year-end. Unless I am missing something, at year-end, they had enough cash for ~1 qtr and I see they rasied enough cash/capital for another quarter (to end of June). They must do a financing soon and I believe some large investors may have pushed the price down to get them to price the deal lower. Now, with the market rolling over, the stock comes off even more. The reality is this is an INSOLVENT COMPANY if they do not keep selling equity to boost cash levels. This is higly dilutive to existing shareholders as well.