Hello board!
I've been in this stock for 5-7 years (lost track....) and have read every financial and pr's issued. It seems over the years they have made great improvements from where they were (duchess debacle, etc) and are on the right track but everything takes time. I'm a little surprised at the capital raise as well but think if its for an acquisition in the driving/flying simulator (or other related add on) it may be a good thing over the longterm. I'm not familiar with the simulation industry or market size but it seems like they would have a hard time significantly growing revenues on just the systems they offer and I bet the reoccurring is probably less than 10% of overall sales. I am a small business owner (20+ years) and have learned the value of reoccurring sales as opposed to large "one-time" jobs (especially during a recession/government cut back)... Unless they do something material in size, I really can't see a reason for the stock price to increase much from what is probably a slightly discounted price today day based on the NOI and the transactional type business.
The one negative I really see is the investment in MR. From reading the MR SEC filings they look like a bunch of guys simply wanting to take a shot at a business idea on investors money with no real skin in the game. Some of the deals they made from paying off very small debts with stock, deals with officers to multiple shell companies really looks bad. I don't know the ins and out but I would never put a dime in MR and hope they don't get to deep with them. Maybe I'm wrong but I tend to believe that lack of clarity and ambiguity happens for a reason...
An up-listing would probably help the stock price some but not sure the valuation justifies a big increase from current levels without some clarity on a multi-year plan detailing how they are going to grow the business. The CC are pretty much useless and they do not provide any substance at all (which doesn't help). Maybe over time Ferris will get more comfortable with the importance of share holder communication and start taking live questions and provide some details like a normal public CEO does.
For disclosure I bought 400,000 (pre-split .03-.10 range) and have sold about 20% over time.
Thanks for allowing me to vent and I have enjoyed reading the previous posts on this board!
