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I don't know that my little post is going to draw the SEC down on the company, and I don't have an accounting background, and I wish I had a day job. Hell, I wish I had a job. Anyway, I was alerted to this by one of the cheerleaders over at CYMI, (where I'm long) so I checked in. Here I found a company, which everyone insists is run by good people, that posts a 50% increase in revenues, and makes $.02 for their efforts. That alone was enough to cause me to look at EDGAR. What ARE these people talking about? Need money? Go to your stockholders first, sell some debs second, NEVER go to the bank. (My guidelines...I hate banks, unless I own 'em) I don't know how to put it, but something's not adding up here. No doubt the technology will become pervasive as time goes by, and there are solid applications just waiting for it. I don't doubt that. This might be the company that pulls it off, and for those of you in it I hope so, but my sense of the situation is to remain leerily watchful, unless someone can put my mind right about these reservations. Some here are going to impute that I have some special kind of brains here. Not so. I just try to think of a company as if it were an individual. This one is going through it's savings (cash position declined), and running up credit card debt with Imperial bank? I'm in Florida, the company is in Sunnyvale. That bank may be a solid regional out there, but because I don't recognize the name, I would run that down before I bought shares. Ideally, I'd like to see a company with compelling technology bank a few bucks, retire debt, and then, if they need add'l working capital, do a secondary. From here on, I'm a lurker. Chaz. |
