Let’s Just Dig In "TDMAN29, YFI is a Canadian public company whose principal asset is intangible as opposed to tangible. You can divide intangible assets ino two categoties: intellectual property and goodwill. The nature of this asset also defines its competitors within what we refer to as our competitors within this intangibles economy. Are the lights coming on? No dumptrucks, cement trucks, loaders, bulk warehouses, are required? DUH! "
Lets start with what was posted previously. Yes, the company is a public company founded in 1980. What kind of wifi was used in 1980? Well, it was originally called Kik Polymers and it underwent a name change in January 2012 to Edgewater Wireless. Sometimes it's quicker and cost effective to slip into a shell company instead of going through the listing process and requirements. Back then it was only 20 patents. No dump trucks or warehouses. The intellectual property was originally marketed by another company that was based out of Acton Mass. This company raised $31.4M in two rounds of back in 2003. They were a fabless developer of wireless system of chip technology that went by Engim Wireless. They could not find commercial success or adoption of their tech which lead to the sale of patents. That explains the public company part and how all that came about.
What's the goal of operating a business that is not a charity or not for profit? It would be revenue. Let's break it down even simpler. Tangible assets would be things like product or inventory. Two thing the company presently doesn't have. Banks like seeing assets in a company because it reduces risk when lending. Tangible assets can be taken and sold to repay loan if default occurs. Banks typically won't lend money to company's that have no assets or cash flow.
Intangible assets like like IP are much harder to value and collect. The perceived value is difficult to determine as there hasn't been any licencing deals or any real deals to assign a value to the intangible assets. There are people(morons) that think it's worth hundreds of billions while others think it's worth whatever it sells for. This intangible asset is what was purchased for an unknown amount and over the last decade a business has been trying to be built around it. It's competitiors like yty and ltc have similar share prices(google finance). Yet to find any commercial success or revenue. Tangible assets include cash, land, equipment, vehicles, and inventory.
Duh, is the reason this business is in existence to generate revenue? Is that why the ceo has 2.3M shares and Nick the Founder of Polaris Lab Consultants is now part of the team? The company is burning about $250k a quarter. That's approximately a daily burn rate of $3k. We know the salary of the ceo and we know the monthly rent. Let's look at one posters cardinal rule of stay in your own backyard when investing. Absolute rubbish and very easy to highlight. Who knows a company or industry better then the ceo of a public company? It would be his backyard and playground. One would expect a ceo to be a multi millionaire not only from business acumen but just from the appreciation from the stock alone.
Business fundamentals don't change with the industry as some would like you to believe. Leaders lead not only in their backyard but in any situation. Qualities and traits don't disappear when the scope changes. Imagine you suddenly becoming brave after a lifetime of being a coward?
What's the end goal? Be weathly, successful and financially independent or be a VP of Shiny Things, angry at the world struggling to get by? Funny how a defender of underdogs that has never contacted the company is so emotionally attached to it and its operations Go figure.
IT'S THAT SIMPLE.