Originally Posted by iceman
Percy reckons companies doing what they say they will do build credibility over time and one should look for companies that do what they say they are going to do. I like his approach in as much as companies need to earn the market's trust, trust is earned never given.
"We are going to be cash flow break even by Q4 2017" - Fail
"We are going to list on the NASDAQ" - Fail
Given these two failures how much credibility can one put of their claim they'll be cash flow break even by Q4 2018 ?
One more fail and three strikes and you're out ? Personally speaking I think those are two serious breeches of previous undertakings given in as much as they're key milestones the company set for itself and key milestones in the company's development cycle that some shareholders were relying on. I have genuine reservations about the plausibility of the reasons given for breeches of these KPI's. The shares have had a huge last 18 months or so despite these two key KPI's bad misses.
If I had of bought this morning at $4.35, (thankfully I didn't), I would be very disappointed with developments today. Surely key personnel knew over the weekend that this deal was in the works and being brokered which begs the question of why this wasn't in a trading halt from first thing this morning ?
If they don't meet their undertaking to be cash flow break even by Q4 2018 I doubt the market will be as forgiving the third time around. In my book, one breech of a milestone is concerning, two would be deeply concerning if I was still holding, and at three breeches, run for the hills !
I see plenty of risk in the stock at $4.00, (the poor sods that bought this morning at nearly 10% north of that) !
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