Avecho Biotechnology Ltd V.AVE

RE:RE:Q2 Financials out

[rusty777]

Hi Kijiji

Yes - it's pretty sad - tis is not just a 52 week low its a new all time low.  I listened to the teleconference yesterday.  They really do think we are all morons the way they discuss issues.  Sadly, many of us are probably MORE educated than the folks running this company so it's actually not too hard to see through their Bafflegab.

The long and the short is that they are foing to "TRY" to get expenses under control by the end of 2021 (ie TEN quarters from now).  If you read through their financials once thing that stands out is the increase in Management and salary expenses from 90.7 million in 2018 to 124.3 million in 2019 (37%).  So...they increased their workforce by 37%????? not really.  They admit that they "miscalculated" their Healthcare (that's a Management failing) but I suspect there have been a significant amount of pay increases and bonuses thrown about.  

They can keep siphoning off income into these "expenses" indefinately so that they show a net loss.....which is why we have probably seen this 28% sell-ff in one day.  probably most of that would be institutional - (they know when to get out) so I would expect to see their 64% fall over the next few weeks.  Insiders have 8%, but at the end of the day by siphoning off income (which incresed 20% this quarter) into salaries the share price becomes moot.

I am in this company purely by error - the company I owned was bought out and unfortunately I was out of commission for a few months when this was happenig so by the time I finally was back the deed was done and the stock price had already deteriorated to new lows.  

On the teleconference the CEO suggested that "Some companies have done better and some worse in this present environment"  - what a BRILLIANT statement.  I am unsure how many companies are over 87% off their highs or have lost over 75% in the last 12 months - I am sure there are some......MOST in this industry have done MUCH better especially given the lower fuel prices and lowering interest rates.

I have lost ALL faith in these folks.  I see where the IR gent gets his condescending attitude - they are all SO full of self importance and how this "is not their fault"  to a point that they no longer even use industry standard measures for profitablity.  Nice.

I am waiting for the lawyers who watch for companies with big losses to start canvassing for Class Action participants....another kick in the pants for shareholders so not something I would want to participte in ......unless they want to make some of these folks guests of the state in a "gated community.

My guess is that we will see a further slide over the next while.  Would be nice to be wrong.  Not something I want to average down...that's an option I reserve for companies I trust.

GLTA (we'll need it)

Rusty