10-Q Out, Review:
Okay. So I'll try and summarize for those who don't necessarily want to read the whole thing.
Pros:
1. The company increased revenues 59% QoQ and 280% YoY for 6 months ending June 30th.
2. Those increased revenues come from licensing and leases which are in the infancy of marketing.
3. Revenues for 6 month end is $300k+.
4. Net loss decreased from $668,000 to $359,000 this quarter not counting negative decision on derivative liability.
Cons:
1. The company is in a ton of debt (1.72 million in notes payable), 6m in liabilities total.
2. The company is defaulted on multiple notes and is even in arrears on the facility rent.
3. Near term financing, restructuring, or merger is essential to ongoing long term operation
Summary:
PCTL is playing a game many have played. They are trying to outgrow their spending and debt. Since November 2018, with the launch of the hospital based Annihilyzer product and tracking system the company has continued to increase revenues at a rapid pace. The company remains on track to grow revenues to $700,000+ this year. Per my previous statement, that puts immediate share value for earnings this years at .0212.
With similar growth trends, next years revenue should value shares around $.50-.75 and 2021 value over $1.50.
Ontario LOI expired, but talks continue. With current growth trends, the company will be profitable within 1-2 years, as long as they find the needed funding or partner within the next few months.
Not sure how stock price will react as merger talks are extended. However, based on earnings 2020 valuation potential alone, this stock could run to $0.30 - $0.60 (would change based on future dilution). It all depends whether the traders and investors think short term funding will happen. Good luck longs
Gambling? Sure, but odds improved...
The company has 4.5 million in liabilities. They are burning between 1.5-2.5 million a year.
Most of that burn is currently in interest expenses to the tune of a million dollars a year.
However, in 9 months they have turned this company into one that generates over $700,000 in Revenues. I for one believe growth rate will improve now that 4 prestige hospitals confirmed their technology.
2 million in revenue for 2020, and 5-7 million for 2021 is not out of the question. If and when that happens, the company achieves profitability and you will wish you had invested.
So, if you see a scenario where someone will recognize that growth and restructure their debt, I think this is a good bet.
If you think they wont, and will go bankrupt in 3 months, then don't buy in.
I personally think they will find someone who wants that kind of growth and opportunity.
Posted by: GoingLong30
Okay. So I'll try and summarize for those who don't necessarily want to read the whole thing.
Pros:
1. The company increased revenues 59% QoQ and 280% YoY for 6 months ending June 30th.
2. Those increased revenues come from licensing and leases which are in the infancy of marketing.
3. Revenues for 6 month end is $300k+.
4. Net loss decreased from $668,000 to $359,000 this quarter not counting negative decision on derivative liability.
Cons:
1. The company is in a ton of debt (1.72 million in notes payable), 6m in liabilities total.
2. The company is defaulted on multiple notes and is even in arrears on the facility rent.
3. Near term financing, restructuring, or merger is essential to ongoing long term operation
Summary:
PCTL is playing a game many have played. They are trying to outgrow their spending and debt. Since November 2018, with the launch of the hospital based Annihilyzer product and tracking system the company has continued to increase revenues at a rapid pace. The company remains on track to grow revenues to $700,000+ this year. Per my previous statement, that puts immediate share value for earnings this years at .0212.
With similar growth trends, next years revenue should value shares around $.50-.75 and 2021 value over $1.50.
Ontario LOI expired, but talks continue. With current growth trends, the company will be profitable within 1-2 years, as long as they find the needed funding or partner within the next few months.
Not sure how stock price will react as merger talks are extended. However, based on earnings 2020 valuation potential alone, this stock could run to $0.30 - $0.60 (would change based on future dilution). It all depends whether the traders and investors think short term funding will happen. Good luck longs
Gambling? Sure, but odds improved...
The company has 4.5 million in liabilities. They are burning between 1.5-2.5 million a year.
Most of that burn is currently in interest expenses to the tune of a million dollars a year.
However, in 9 months they have turned this company into one that generates over $700,000 in Revenues. I for one believe growth rate will improve now that 4 prestige hospitals confirmed their technology.
2 million in revenue for 2020, and 5-7 million for 2021 is not out of the question. If and when that happens, the company achieves profitability and you will wish you had invested.
So, if you see a scenario where someone will recognize that growth and restructure their debt, I think this is a good bet.
If you think they wont, and will go bankrupt in 3 months, then don't buy in.
I personally think they will find someone who wants that kind of growth and opportunity.
Posted by: GoingLong30
