RE:Worst results than I was predicting. Case close CLOWN. Read and learn. https://stockhouse.com/companies/bullboard?symbol=t.vlns&postid=33993976
PUNJABI wrote:
Full of hype and spin. Not much on the bones.
I was expecting much higher revenues because they had bought and overpaid for money-losing companies. After all these acquisitions and expanding their production facilities but still, no big jump in the top-line just $2.20 m but losses are shooting up. Last quarter they had a revenue of $18.7m and this reporting QTR $20.9m only.
Why did they pay so much money for? Recipe to destroy the shareholders in work with massive dilutions and overpaying for money losing companies which seem to be the trend in the sector. They will be doing a reserve spilt too just to list on Nasdaq while the other companies have been doing that just to reduce the number of outstanding shares after massive dilutions.
They lost $12.8m in the quarter at this pace they would need about $51.2 m for the next four quarters to burn while they only have $31m in the bank. Some of the cash may be earmarked for capital expenditures and they might also be cooking another purchase of another money-losing money.
This may mean that they would be raising more cash in less than 6 months just to fund their losses. This burn rate is going to get worse.
They are going to have a tough time integrating all the different companies and new bosses at different locations.
Should listen to the management spin and the pumpers on the BB instead of being objective and doing proper DD>