I am impressed that EUTO got it out and out on time.
EUTO is still "on probation" with me. They lied big time. However, they lied only once. To me there is a difference between a lie and a lying modus operandi.
Getting this balance sheet out is a good sign.
This is especially nice since we got the Freedom shares as promised.
As far as the particulars, there are some good signs and bad signs. This is to be expected in any business: There are some successes and failures.
However, the balance sheet is not a 10K.
First of all, the turnaround from a $561K loss to a $799K profit is not a 274% increase in EPS. I wish they would not frame it that way. It is not accurate and it sounds like hype. However, I understand their exuberance.
I would like to see the audited 10K. At this point, I trust their figures.
This is what we have for last year: (last fiscal year)
$799K profit
4 contracts signed
1 contract completed
1 contract went bad
2 contracts still in the hopper and looking good
At an EPS of $.008 and with all the baggage EUTO has, I think a multiple of 10 is the best to be expected, for a total gain to $.08 over the next few weeks.
A lot of people will consider this bashing, . . . tough.
However, things are looking good.
With the current trend, I expect next year to bring us:
An increase in profitability
5 new contracts
1 contract will go bad
2 old contracts will come to fruition
1 new contract will come to fruition
3 new contracts will be in the hopper
With such an increase in stability the multiple could go up to 15. We could have a nice 50% increase in profitability. This would give us a stock price of about $.18 in 13 months.
I would be happy about that. I wrote off this money a long time ago. I will never get into penny stocks again. For me, the base is $.03. So, an increase to $.08 and then to $.18 is nice.
I certainly won't mind it going higher. If it goes to $2.00, I will retire. But, that is pure hype.
The share issue is and will be a big drag. The 100 million share float is now a permanent reality. The news release was quite plain that the 2 companies did not owe stock. They will be able to pay EUTO off and still keep a nice profit. Euto will use that $600K to pay operating expenses. We may get extra spin-off stock as compensation.
EUTO will not buy back stock, either. It would cost too much. As soon as EUTO starts buying in large quantities, the price would go too high for them to buy any more.
Getting back to the balance sheet:
I don't understand the receivables: We were told that we were "owed" 50,000,000 million shares. I think the companies owe us money, not shares. I think EUTO didn't have the contracts they said they did.
Now, the last press release says that 2 companies owe about $600K, which would buy about 20,000,000 million shares at $.03.
The balance sheet shows we are owed only a total of $1.3M in any form whatsoever.
Is J. O'keefe the one who owes most of the $600K?
The 50,000,000 million shares have to be in one of the 3 receivables listed: Stock receivables, receivable from mkt. mkrs., and receivable from J. O'keefe. These 3 total 1.022M in value.
What I want to see is the 10K. I want to know the income, expenses, and how they got net income.
Also, EPS is after taxes, but it isn't clear if the net income in the balance sheet is pre- or post- taxes.
Overall, a good start.
I just hope the hypsters don't ruin a good, steady climb in value.
Lurker |
