Why did I purchase my first FUSZ shares? Oracle a
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Oracle and Marketo. Unique transparent CEO, low float, game-changing product are all bonuses but it’s those 8-Ks that cemented the deal for me.
Would I be invested if Oracle and Marketo were not involved?
No.
Why not?
nFusz has a potentially game-changing product but revenues is the driving force for company success. Oracle and Marketo provide a concrete path to revenue generation. Pardon me, ROBUST revenue generation. Game-changing products without revenue unfortunately does not lead to business and investor success.
The stock price has fallen. Aren’t we doomed?
No. During an early point in a company’s history, in the pre-revenue phase, stock prices are subject to numerous influences not affiliated with revenue and revenue-affecting factors. This includes hyping, irrational overexuberance, flipping, malicious shorting, market manipulation, etc. Once substantial revenues are generated, these pre-revenue factors hopefully will become less consequential as many more true investors come on board, diluting the effect of the aforementioned factors.
Doesn’t stock price matter?
Yes, to some extent. It influences fund raising and stock warrant issues terms. It influences insider and employee compensation. So those who say CEOs shouldn’t care about share price don’t know how micro/small caps work. They need cash until revenue is generated. I have been looking at another stock for a while. Great product (pre-FDA medical robot) but share price is pitifully low. They needs tons of cash to last the next couple years prior to generating revenue. To raise this cash, warrants need to be issued and exercised but the price is too low for investors to sensibly exercise those warrants. New fund raising can be done but why would you want to? Stock price has been stagnant. Why would one want to provide funds to this no revenue company? Share price matters at this phase.
Well, FUSZ share price has dropped. Aren’t we in the same boat?
No. Rory said at the shareholder conference in NYC that he wouldn’t do any more fundraising until after uplisting. Could he reneg on that? Sure, things change. But making a statement like that to savvy no-nonsense investors strongly suggests (but does not confirm!) that revenues (actual and projected, in addition to already available cash) are coming in (or projected to come in) to sustain day-to-day business expenses and later uplisting. If this is indeed the case, then the recent share price drop for FUSZ will only be noise for me before revenue figures are announced. But that noise sure is loud...
Aren’t you nervous?
Yes. I am human. But I keep reminding myself of why I invested in FUSZ by going through the above questions and answers. These views are my own. Therefore I stand firm. But it ain’t easy at times like last week. If revenues are not being generated, then that is a major issue. We will find out in the next few weeks to months. I believe in the “Master Plan” until then.