Your message #992 slams me so here we go with a response.
To summarize your points:
-Forecross is borrowing money from a bank against its receivables; So what?
-There is less than half a million owing to third parties - not four million.
-The assets of Forecross are over three million.
-Everyone knows the second quarter results are poor.
-I must be the fund manager short 50,000 shares.
As to the bank loans I must have really messed up in trying to explain what was going on in my last message. The loans are from an "officer" at 24 percent, not from the bank directly. The "officer" in turn probably borrows from the bank at far less than 24 percent (putting up his Forecross shares as security). Since Forecross has a negative cash flow of around $75,000 a week, the officer is funding this. It is this loan that is now over one million. At some point either the bank or the officer will pull the plug, and sell those shares into the open market - and kaboom!
As to liabilities - you do have a selective criteria in choosing what is a current liability. The statements show $3,318,098 as current liabilities including deferred revenue. In this amount are commissions and distributors fees of $819,529 all due now. You also missed out unpaid compensation - accrued liabilities and the amount payable to the 'officer." Current liabilities are over four million now.
As to assets: you say they are three million. I say over two thirds of these "assets" are what Forecross describes as "unbilled receivables" - what ever that is supposed to mean. Come on, what type of asset is this?
As to the second quarter results: How do most shareholders know they will be poor, as you said in your posting? How does D. Kost know the earnings will be negative, as he says in his last posting. Do you, or others, have inside knowledge? It doesn't seem fair that some investors know what the results are although Forecross has yet released nothing.
When the last quarter results came out the stock dropped four bucks - and then the boys got it back up again for a while to $11. Does this mean that on May 30 we will see no drop? You would think based on their press releases of revenue contracts issued last fall that this would be a real banner quarter. What happened?
As to me being 50,000 short or a fund manager - I wish I were. I am just a single investor who really gets upset with overly promoted stocks on the VSE. Consequently, a few acquaintances are now short.
Look - let's not kid ourselves - in the long run all stocks go up and down based on current or future earnings. Forecross has generated a paltry 1.5 million in revenues for the three months ended December - compared to an overall mkt estimated as high as $600 billion. What percentage of the mkt do they have/ with not much time left. How can this company be worth even five percent of its current cap of $90 million. Even if it could net 50 percent of sales, it would need to generate revenue of over $400,000 every single business day for the next few years to get anywhere close to driving any earnings to support this value. They're no where even close!
Something is wrong.
The promoters think the problem is me. I think it's the whole financial mess this company has found itself in. Lets wait until the first week of June when I believe Forecross' game will be over.
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