Post by
ridethewinners on Jun 26, 2022 11:09am
Completely uncertain
I have a small position here, but I am very concerned with the uncertainties of ,management. I see in the latest release they are considering (which almost always means doing) a 20 for 1 stock consolidation, and giving themselves more options and incentives. Neither of those have been positive for any companies I have ever looked at, and both are reasons for me to leave here. I have no problem with management having incentives as long as they are not egregious, and they are earned. This management group seems to want more of the cake before it is baked.
A consolidation usually means further dilution, as the appearance of a higher price allows them to sell more equity.
It seems the opportunity in front of them is huge. I wish they would ignore the capital markets and the greed glands, and just execute the business plan. If revenues can be grown, and expenses can be controlled, they should be cash flow positive later this year. Grow your way out of the penny stock world by delivering real results, being patient and slowly buying back your stock once the business is producing profit. Using mirrors to confuse shareholders and enriich the management group mostly fails.
The arguments that a higher share price and fewer shares o/s will attract bigger investors is farcical. What attracts investors is performance , get the business engine running and generate free cash flow, quit spending time and resources on anything other than growing the revenue stream.
Some clean disclosure would also help, being more open about what their cost structure is, what expenses they can control and how they plan to do that. The long term vision is tempting, but they seem to be closer to the pump and dump culture than I would like.Some clarity would go a long way.
best of luck