Let's take a look at the most recent financials. For those of you who can't find them:
sec.gov
These are the filings for the period ending March 31, 97. I will only look at official filings since the management is on the hook for what they report to the SEC.
Ah yes, another profitable quarter. They made a cool $13,525. (Most of you should have made more than that in this stock by now.) A strong candidate for a $20 stock price if I ever saw one.
The receivables balance was $15,820. (Most of you probably have margin balances higher thatn that) Again, for a company projecting millions in sales, this doesn't appear to support that contention.
Total assets of $1.3 million comes largely from what appears to be their equipment (sewing machines etc). It is unlikely it is worth anywhere near that in liquidation.
No cash in the till. Another good reason to support a $20 stock price.
Current liabilites exceed current assets by $427.547 and the accumulated deficit from this fine company is $18,178,949. Another reason to believe the management will turn this around.
The company states that unless they can obtain additional financing, they question their own ability to continue as a going concern.
With the issuance of an additional 2 million shares in April, the earnings per share for the year will be minimal, at best.
I have seen profit margin assertions unheard of in the textile industry. I have seen a lot of discussion of what the company is trying to do, but the "Blue Sky" is just what they want you to believe. I believe it when it hits the filings.
So tell me, once again, what makes this such a valuable company.
If this was a horse, someone would shoot it. |
