Who knows? This is not a standard business model. There's virtually no effort to improve the financial model, make a profit, produce a product that works, or release a PR that's not usually 95% false.
On the other side, you've got a CEO/Board who is focused on his own salary and being a youtube movie star. The stock is driven by lenders who very effectively buy stock at wholesale and turn around and sell it to people who love to buy at retail. Why they don't go direct and get the special wholesale pricing is rather amazing. But the model would collapse then, wouldn't it?
A few things can easily pull a leg off this table, and eventually will. The retail stock buyers bail, the SEC looks into the false PR's and other stuff, the CEO gets wise and quits while HE'S ahead (toxic lenders will hunt him down), the folks looking for the unpaid tax money padlock the scam, a couple independent product performance reports due out over the next couple months are widely read, a lawsuit (he has no cash for defense), a warranty claim he doesn't have the money to pay (this happens to all companies), Home Depot moves on to another supplier (as they often do), Conboy pulls the plug and changes color, again, and number of other things one can add to this list. A house of cards would be a step forward.
Will reiterate a comment I made well over a year ago. Shedding Home Depot would do wonders for the financial model (relatively speaking). Depot eats companies like Eco, as you can see from previous 10-Q's. You're never going to see anything in Eco's SEC filings that reveals the product Depot sends back for coating and the myriad of other reason Depot's customers cull out so much product from vendors, especially on the lumber side. HD is all about a PR for Eco, not a path to profit. Never will be. Add more stores, lose more money. But, it sells stock at retail pricing, and that's what matters in this business model.
There is nothing in this e-mail that everybody doesn't already know. Some folks are obviously extremely comfortable with the status quo, and more so the ones buying stock at wholesale....and Conboy.
This is not a business model for a company planning on a future, nor a buy-out.
