Go, thanks for the updated information. $100 MM in the bank is surely a good thing. The question is what is there "breakeven", I was counting on sales in the $22 or per quarter, at $16 MM, unless they have taken Draconian steps to cut R&D, and SGA, will cause quarterly bleeding of probably $25 MM or so. Does anyone have visibility of when they move into the black and generate cash? Printing stock (and diluting current holders , so far by 30%) is a stop gap, growth of the top and bottom line is what counts, and I do not think that $16 MM quarterly is going to get them to a cash generating position by a long shot. It will still be a very dim comparison to last years results. This stock, even if we assume sales rate of $20 MM (much more that the forecast you cite) is still valued at six times those rosy sales forecast, quite rich if we are going into a bear market in the next three to four months, IMHO. Mind you, their management has done a good job of getting this additional financing (I have not seen the detail and potential strings attached), because financing opportunities are going to become rarer as we move forward, IMTO.
Zeev
irrevolute.iuma.com |
