GREY:CHOOF - Post by User
Comment by
blackroosteron Jul 11, 2020 6:09pm
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Post# 31256203
RE:RE:RE:RE:RE:RE:Soon to be choo holder
RE:RE:RE:RE:RE:RE:Soon to be choo holder I do agree they may do a reverse split, not sure when tbh.
The real issue is revenue. They are at about 2.75 million a quarter w/ both choom and vida's revenue. Vida had about 6 million cash on their balance sheet, choom was under a million when last reported (658k on report).
Choom spent 2 million on administrative fees and employee salaries last quarter. This alone is almost just as much as their revenue. If choom did not buy vida, they would have gone out of business, or offered many more shares. With 650k on balance sheet, them using vida's cash to build out stores ... where do optimistic investors think cash will come from? Also, choom recently put up leins on all of their property to satisfy the banks. This is scarry since any equity choom had is now owned by the bank.
Choom needs a big investor or needs to ramp revenue. But, stores are losing online order options and have limited foot traffic due to covid with both in-store limits on people, and lack of visits from so many staying home.
Not saying they wont do well in the future, but the risk profile is so masisvly high. I had a 200k position which broke even during the pump to 16.8 cents, then lost all of it's profits within a few weeks due to the selloff. Missed opportunity.