Your post is a curious mix of wishful thinking and common sense.
You are saying that JBI did not go the VC route, instead to friends and family. Well, I can't imagine the *angst* in NF now. I never discuss stocks with friends. I want to keep them.
But besides that, did it not occur to you that perhaps it is as simple as the VC's would never have invested in JBI because theya re smart? And that perhaps JB is simply a good salesman?
And you say that it is not the financials that ae causing the PPS fall, but the "cycle of money"? OK, let's review.... looking at the last quarter.
Sales = 302k
CGS = 273k (btw, the tape business had far better margins than the P2O business)
SGA = 2729k
R&D = 108k
What is wrong with this picture? P2O made 10k. They would have to increase Production about 300 times to break even. Lookign at the Balance Sheet... they can only last 1 more quarter at the above rate of cash burn. Yet you think it is the cycle of money... NO it is not. It is the SG&A. That is why people are selling. They are getting out before they go bankrupt, while they still can.
And I have never seena bunch of investor before that simply counted on further funding. This company has burned 60 Milion. And you think there will be more to burn, for several more years? Totally illogical.
The one thing that you say that is common sense is that there could be a Reverse Split. Given the company's track record, I would say that no one in their right mind would provide further funding. Anybody that would would have control, and would immediately eliminate the SG&A. Heddle did not do that. Why? He basically threw away 3 Million.
So that leaves a Reverse Split. No other options. I don't know about you, but I don't invest in companies that are not profitable in this price range, because they will eventually save themselves with a R/S. It is management's only way out. It is printing money. Invariably, the stock price falls after the split and investors are screwed. Then management issues more shares, getting more cash. When I receive proxies and circulars I immediately look at the points to be discussed at the meeting. If it is to consider a R/S I sell the stock immediately.
Most of these stocks fail. I have seen only 1 stock benefit from a R/S, that was points (PTS:TSX).
You are saying that JBI did not go the VC route, instead to friends and family. Well, I can't imagine the *angst* in NF now. I never discuss stocks with friends. I want to keep them.
But besides that, did it not occur to you that perhaps it is as simple as the VC's would never have invested in JBI because theya re smart? And that perhaps JB is simply a good salesman?
And you say that it is not the financials that ae causing the PPS fall, but the "cycle of money"? OK, let's review.... looking at the last quarter.
Sales = 302k
CGS = 273k (btw, the tape business had far better margins than the P2O business)
SGA = 2729k
R&D = 108k
What is wrong with this picture? P2O made 10k. They would have to increase Production about 300 times to break even. Lookign at the Balance Sheet... they can only last 1 more quarter at the above rate of cash burn. Yet you think it is the cycle of money... NO it is not. It is the SG&A. That is why people are selling. They are getting out before they go bankrupt, while they still can.
And I have never seena bunch of investor before that simply counted on further funding. This company has burned 60 Milion. And you think there will be more to burn, for several more years? Totally illogical.
The one thing that you say that is common sense is that there could be a Reverse Split. Given the company's track record, I would say that no one in their right mind would provide further funding. Anybody that would would have control, and would immediately eliminate the SG&A. Heddle did not do that. Why? He basically threw away 3 Million.
So that leaves a Reverse Split. No other options. I don't know about you, but I don't invest in companies that are not profitable in this price range, because they will eventually save themselves with a R/S. It is management's only way out. It is printing money. Invariably, the stock price falls after the split and investors are screwed. Then management issues more shares, getting more cash. When I receive proxies and circulars I immediately look at the points to be discussed at the meeting. If it is to consider a R/S I sell the stock immediately.
Most of these stocks fail. I have seen only 1 stock benefit from a R/S, that was points (PTS:TSX).
