EastWest Bioscience Inc V.EAST.H

Falling Short

[Riskitbiscuit]

As some have pointed out on here, the last few quarters have indeed fallen short in terms of revenue. Especially when compared with the projections we were fed in the investor deck. The company managed to generate 1.7M in revenue for the last fiscal year. Last I checked the investor deck projected 5.3M. Strangely enough, if you pay close attention you would see that projection in the investor deck is for the calendar year 2019 not the fiscal year. If you were inclined to be 100% straight with whats written in the deck, the company still has at least two unreported months of revenue to fulfill that projection. Not that I am holding my breath for them to fill that 3M plus hole. My point is, anyone who has paid attention to what this company has said over the last two years can see the inconsistency in what they plan, and what they execute on. No one can deny this. But if you are going to point out the company has fallen short, and indeed they have, you have to also acknowledge the incredibly low price of these shares. I would not care if they projected 100M and only made 1.7M, if the market cap was less than 2.5M, its still a steal. Had the share price been 30 cents and they fell this short in expected revenue I would be first in line to short this stock right into the ground. But its 3 cents, with a consistent floor of support at 2.5 cents (over 3M bids stacked last I saw). Management showing a pattern of falling short on expectations is a problem, and one I think this company will sort out as it grows. East is certainly not the only venture stock to do this repeatedly. But as far as the price of the stock and its realized revenues to date, the risk is very limited and the upside is huge for those who have longer than a 12 month time horizon. Just my two cents. Im still holding and continue to average down as long as the shares remain this cheap.