I did a little comparison between EEEE and PLRX.
PLRX should be out of cash any day now. Based on their
quarterly losses, cash does not even cover one quarter,
and their expenses are about 4 times their revenues.
PLRX is definitely at deaths door. Once again , I'm not
trying to say that EEEE is a great company , but it is
far superior to PLRX. They have close to two years of
cash vs. PLRX nothing, and their expenses are only about
1.15 times revenues vs. PLRX 4 X.
It amazes me that PLRX is trading at 5/16, higher than EEEE.
Comparing to PLRX strengthens the case for EEEE being
undervalued, OR PLRX being extremely overvalued.
If EEEE is only worth 1/4, PLRX should already be at ZERO.
I do accept your points about not counting 100% of inventory
and AR, but still, EEEE has 200$ million in cash and a
fairly slow burn rate, and does have a good chance of
survival, and by the markets pricing, it is saying EEEE
is already as good as dead.
I've seen many companies with no tangible equity, huge
losses and mountains of debt trade higher than EEEE is now.
I suppose I'm trying to say I think it is a worthwhile speculation.
I certainly appreciate your input and look forward to
future exchanges, be it about EEEE or another company.
Regards, Eric. |
