I suspect what happened is that, on the reverse merger, several million shares were somehow not accounted for. I understand that there are two accounting firms now involved (the former firm and the present firm), who are trying to reconcile (or have reconciled) with each other concerning the financials, # of shares, etc. I understand this process is nearing completion.
I am going on the assumption that there are around 18 million shares outstanding. That the stock trades at 2 bucks a share is not surprising. I know many other companies (one example is TSIS, another is NATH, another is IBSDF, there are many others!) which are trading at what might be perceived as low prices relative to valuation or growth prospects. The reasons are that such companies simply do not show up on radar screens.
But as long as such undervalued companies are doing their business right and have a vision for the future (i.e., growth), it becomes a matter of time before the stock gets "discovered". Once the stocks of such companies get discovered, they take off.
Companies to avoid are those with "toxic" preferred or debentures. Many times, companies issue such convertible shares or debt because that is the only way in which they can obtain financing. It's a terrible deal for the shareholders.
JAWS has no debt, and has a credit line with a "blue chip" lender (Mercedes). So far, there has been no need to draw upon this line of credit. That is another "plus" for JAWS (no debt, other than short term debt in connection with boat/RV purchases which gets paid off as soon as the boat/RV is sold).
I see JAWS not as a "daytrade" (obviously) but as an investment in a company with virtually no debt and which is growing its revenues around 50%/year. |
