RE:RE:Today ...and the Financials. I understand your concern, Gal. This is one of those investment type companies that goes to Mars and back with no apparent direction unless they finally get a CEO that can foster one. I think John O'Bireck is that person for Sparta. How does that apply to your question?
The acquisition of the Picton property, which makes no sense to Sparta's current direction and which I believe originated prior to his arrival, ....is, if nothing else, a relatively cheap asset. Now that the ball for that development is finally rolling it should definitely add working capital once the development is finished and the units sold. As such it may be more longterm depending on when the first shovel hits the ground. Based on the NR it appears they're hoping to finance this project, at least partially, through presales ....so no significant capital requirement to get it started???
The depth of capital required in the shorterm could definitely be offset, in part, through up cycling contracts. Hopefully that happens sooner rather than later with new environmental laws and expectations. The pandemic will continue to have some impact on this as well.
This is certainly still very much a speculative and longterm play ....but their current revenue stream seems sustainable, they really worked hard on the liabilities side of their ledger and their R&D seems second to none (although that's always expensive).
I bought mores shares today at $.05 so feeling pretty good all things taken into consideration.
GLTY and GLTA!!!
GalAnonymous wrote: I wasn't impressed but it was basically what I expected and yes, it was nice to see a net loss from operations and a working capital deficit reduced almost by half plus positive cash flow. I am concerned about this statement though:
"In order to meet the Corporation's future working capital requirements it will be required to attract additional funds through the issue of debt or equity."
I know it's good on one hand, they need money to grow etc and the SP is so low I don't expect it to drop too much anyways, but the phrase "the issue of debt or equity" makes me shiver. Thoughts?
And yes, I agree 0.6 is a great entry point, I was super happy to get in at that level :) And if I come into more money I will definitely try to average down. Hope it won't be too late!