FormerXBC Inc XEBEQ

RE:RE:RE:RE:RE:RE:Xebec has a lot of red flags, this investor says

[Resilience19]

Think of Monopoly. Everyone starts with the same amount of money. As you move along you can buy land/services, houses and hotels. It's a bit of a balancing act, trying to determine how long you take before buying - some preferring to keep their dry powder to only buy the best of assets that generate the most income. This said, when the game is over, those having avoided buying, trying to hold on to their cash, tend to fail because they have ongoing cost - can't avoid rolling the dice on properties acquired by those having taken the risks...So, at the end of the day, it all boils down to a balanced risk management act. Those with cojones tending to with compared to those more conservative. In short, if you can't stomach XBC's strategy, you may want to move on. You'll end up sleeping better at night - but perhaps missing on growth. My two cents for the weekend.

Newtrader1982 wrote: It was just some open questions to the board to start a discussion about what would happen if their cash position were to evaporate through acquisition costs and net losses it's a valid concern I think. They would have to raise cash somehow in that scenario.

Ciao wrote: Sounds like a plan, I'll suggest to Kurt and the board that they call you when they are looking at succession planning  :-) 

Newtrader1982 wrote: So essentially their growth plan is to dilute current shareholders to fund their operations until they can buy enough companies to increase revenue and hopefully turn a profit. What happens when the 100 million runs out? Do they raise cash by issuing more shares?