My real concern
The infomercial business is a tough one. The odds of nailing a successful product, meaning selling over 500,000 units, are significant. The odds of success for that same product brand to go retail are even larger, especially with a no name sponsor.
What's also troubling is the ramp in sales without corresponding profits. Tells me one of two things. The margins are too thin or the market at the right margin was determined to be too small. In either case, this leaves the company in a precariously scary cash flow position. When the fad winds down or saturates the market, which usually occurs within 1-2 years, what's left?
Did they bank $50m to buy time to develop other products and stay in the game? It's a big roll of the dice whether they ever hit on another successful product.
Now, let's say the company model is more focused on building brand for a retail launch. This places shareholders in a position of having to hit two home runs to achieve success. First infomercial success followed by retail success. Good luck.
All the rest of their business is peripheral.
There are options for the company while their top line is rising on dermawand. Unfortunately, it appears they are staying the course or being advised poorly. An indication there is underlying issues is the market for their shares, virtually none. Maybe some penny stock players buying $1-5k and having them run around on mindless presentations which produce little. Oh look, the stock went up. The float is small and theres no liquidity, it means nothing.
They have a shot but its a long shot for the long haul imo
AI
