EarthLabs Inc V.SPOT

Alternate Symbol(s): SPOFF

Metals & Mining Industrial Metals & Minerals

EarthLabs Inc. is a mining investment, technology, and media company. It provides strategic leverage to the metals and mining sector through investments, royalties and a full suite of data-driven media software-as-a-service tools and services, including CEO.CA, The Northern Miner, MINING.COM, Canadian Mining Journal and DigiGeoData. Its Financial Technology Division (FTD) business vertical includes CEO.CA Technologies Ltd. (CEO.CA), EarthLabs Media Inc., DigiGeoData Inc. (DigiGeoData), and its investment portfolio. Through FTD, it offers a range of cloud-based, interoperable Web applications. CEO.CA is a social network for investors and traders in junior resource and venture stocks with online and mobile functionality. DigiGeoData is developing its DigiGeoAtlas platform, a software-based GIS interactive mapping interface, alongside its DigiGeoMaps distribution business. Its investment portfolio is a combination of its strategic investments in junior mineral exploration companies.

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EarthLabs Inc > The Stock Market is Sleeping

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Comment by BCdudeon Aug 28, 2021 2:36am

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Post# 33777930

RE:RE:RE:RE:RE:RE:RE:The Stock Market is Sleeping

Thorough job of answering this, Hen. Couldn't have said it better myself. It's been strange to see the market's non-reaction to this excellent quarter.

HenoftheWoods wrote:
Hi Jim,

I can take a stab at your questions.

1) No, I am not concerned.

We need to dig into the numbers a bit deeper here.

For the first time since 2016, the company awarded performance bonuses to key employees to the tune of 1175000. I personally think that is not unreasonable. Removing that from the O G&A of 3440487 already puts us above water. You will also note a large contribution from stock based compensation of 256 555 because of, in part, the many new hires. So numbers are not as worrisome as you see them. In fact, I would argue that as long as the company is well capitalized (which it now is) it should push for very rapid growth of its talent pool rather than worry about ultra short term returns. II am here for the potential growth and am happy with what I'm seeing. SPOT, in my opinion, is making all the right moves to becoming a giant.

2) No, that is not possible. Think about it. The acquired companies may have losses, but not to the extent that these are higher than their revenues. Remember, these were private outfits that would not have lasted a year under such circumstances as you imagine. They were mainly acquired, in my opinion, because they needed capital to continue their expansions, and SPOT has plenty of that.

3) I have not valued SPOT based on their earnings per share, but rather on the total value of their portfolio. Yes, NFG has dropped some, but not to an extent that has me concerned whatsoever. You may value NFG at 8.50$ like the market (irrationally does). I prefer to note Eric Sprott just participated in a fund raise above 11.50$. Why NFG dropped dropped 20% on a 3% dilution priced above-market is one of those questions only the irrational market has an answer to. And remember, SPOT's investment portfolio is much more than NFG... Their position is Golden Planet is valued at 15000000+. And who knows what new placement in some new mining explorer they are currently considering...

Cheers,

Hen