Terago Inc TRAGF

latest financial report

[jimrabbit]

by what stretch of the imagination was this a good quarter?  revenues are flat (for the last 5 quarters!!!) so no growing the core business.  projects in the pipeline actually fell meaning new sales are declining.  loss in the quarter is up by $1M due to higher interest costs (that 14% loan bites).  what is management's long-term vision for the business - more of the same?  that isn't working now?  smh.

[claritas]

What did you expect?  With financial constraints, the Company (read the release!) is focusing on what brings in most margin. The thesis on the Company is capitalizing on 24 GHZ and 38 GHz licenses.  The Company's operations are only relevant at this point to keep the Company going and avoiding breaching the covenants. What I really would like to find out is the approximate

[jimrabbit]

and why would the lenders bother with that when they already basically own the Company?  the lenders have fancy offices on Bloor St. if there's money to be had they'll take it.  if the plan is to capitalize on the licences, 'Management' should say that instead of pretending that they have a viable (by that i mean profitable lol) business.  and then you have a Board

[claritas]

The lenders don't own the Company, yet...   But it does speak to the value of the licenses, otherwise they would never have lent the money in the first place.  If you read the press release, you should note the importance of the licenses to management.  They never claimed that the business would grow in leaps and bounds.  No the only investment thesis is the potential

[jimrabbit]

on the contrary, they're already out of money...and losing more every day they continue the "business".  the new CEO and 'management' have never discussed the actual $$ value of the licences, or engaged a third party to explore alternatives such as selling the company, or a merger.  instead they all blather on about how business is improving, when it is factually

[jimrabbit]

and furthermore, when the legitimate Banks won't finance you, and you turn to what amounts to loansharks, you have to figure there's a problem somewhere!!!

[claritas]

No, not a problem, a high risk situation is what it is.  This is a speculative stock, with high risk and high reward.  If you only focus on the risk, without assessing what the probability of reward is, then this stock is probably not for you. Again, if you keep focusing on day-to-day operations, I think your thesis is off the mark. No one will buy this stock for current operations

[jimrabbit]

They've been out of money for some time now; when Banks won't finance you and you're borrowing from what amounts to loan sharks, and your returns are negative and you're paying your Directors with shares because you have no cash, this is all difficult to understand why the lenders wouldn't just take all the money from the licences for themselves and leave shareholders with

[jimrabbit]

 To listen to the CEO spin you'd think this thing was a howling success revenues are basically flat and they're losing money ever quarter unless they can actually you know like GROW the business?  fine the thing that is never revealed is how much the valuable licences are worth in $ to a legitimate enterprise and how much equity holders would be left with if the company was