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Now it's made a nice recovery. Maybe people got a clue from Yoav's explanation of the business and how it is going to continue to develop.
That press release this morning is absolutely masterful. This is a thinking person's stock, and is why I am so excited about it being my second largest holding. It makes me want to sell everything else I have and put it here (not that I will, of course).
You can judge for yourself tomorrow morning by listening to their conference call at 9:00 A.M. EST. I think Yoav is one of the most intelligent and in-command chief executives that I have ever seen, and he is backed by a very experienced and intelligent management team.
Thanks, Halkid. If management can effectively develop the ventures that they have promised will evolve, you should be hopeful, as the company will eventually do very well.
Thanks, Captain. I want to be wrong in my assessment so that everyone here will do well, as they deserve to do well as a reward for their loyalty.
It's closed and won't be reopened, Big RDC. I've enjoyed your posts and those of all of the others over the past half year.
Thanks very much, Knux. I hope I am wrong and you and the other supporters are right.
The company makes virtually no money in gross margin on any of its revenues, with margins having declined from 3.43% in Q1 to 0.28% in Q2, and they rewarded themselves for that effort by paying themselves nearly a million dollars in bonuses in the form of stock compensation over the first half of the year. That's not the kind of company in which I want to be invested.
Thank you - I hope for all of you that this company does well and rewards your faith in it and its management.
Where I go from here is out. I just sold my 192,400 shares at an average of a little over $.40 and made 9.33% for the roughly half year that I held it. Based on the 10-Q issued yesterday, I have lost all confidence in management's integrity and ability to manage their operations, and I'm out of a stock when I feel that way about its company's management. Good luck to everyone who believes in them and this company.
I unfortunately did have time to read beyond the skimming, and the first thing I noticed is excerpted from Footnote 9 - Related Party Transactions - below.
"Employment agreements
During the six months ended June 30, 2021 and 2020, the Company recorded management fees of $270,000 and $252,000, bonus of $976,200 and $0 and paid $301,300 and $62,300, respectively."
That's right - of the operating loss for the first six months of 2021 of $2,175,343, 44.88% of it consists of bonuses paid to related parties.
Bonuses for what? Certainly not for improving the gross margin percentage. The gross margin performance regressed from 3.43% in the first quarter to 0.28% in the second quarter.
Leandro had better offer some really valid justifications for this lack of performance when he gives his update Thursday, including plans to improve the margin structure and reasons for why margins declined so precipitously in the second quarter.
Can anyone justify the company's second quarter performance or lack thereof?
I'll post my impressions later - I'm on vacation this week, and after coming in to the house to check to see if they filed, I'm going back out to my back yard to read on my chaise lounge until the sun sets.
That's another 420 shares for me this morning at these ridiculous prices. Yoav has this firmly under control, and it will be evident to all of those who know how to listen from the call to be held on Wednesday morning.
It'll probably move up if they file the 10-Q on a timely basis today and the results are good.
I would think because of its infrastructure, its sizable partners, and the various other relationships it has in the energy business it will do well in the coming years as their products continue to gain acceptance within the energy business.
Abingworth just bet $100 million that seladelpar will make it through the FDA, as they don't get any money paid back until it gets regulatory approval in the United States or EU. If you're familiar with that organization, they are extremely astute in the biotech field, and if they're betting that much on it to succeed, as the share price continues to fall in this recent biotech decline, there will come a point at which this is ridiculously underpriced, if in fact that point is not now. This is now on my radar and will be for some time, particularly if the share price continues to fall.
Whew! I'm glad to hear it, because a big part of this being my second largest holding is my trust and confidence in Yoav, and if he were selling any more shares, that would have been called into question, as he said on the last call that there is no longer any need to do that, as they have all acquisition and expansion plans covered with current funding. A definite highlight of the upcoming week will be their earnings call on Wednesday at 9:00 A.M. EST, as every call of theirs is a classic with Yoav at the helm. I enjoy them so much that I'm even getting up early on a vacation day just to hear it, and it takes a lot to get me out of bed before the market opens when I'm on vacation!
I'm finding that on certain days I'm exhausted after I walk from my car across the parking lot and up the stairs to my office!
Whatever they "cost", they're a non-cash expense that is recorded due to accounting rules, and it doesn't impact the operations one way or the other. The key here is how much product they can sell and what they realize in operating profit on the revenue. At this point, if the share price were to recover soon to the Amazon strike price, I'd be happy, even though it's less than my basis. It's definitely a long-term investment for me in the three-to-five year time frame, as I considered it to be when I bought it.
$19 million in Q2 sales isn't bad, and they imply that they will more than double before the Xone incremental sales to $40 million by Q4. I love this stock, especially at these levels.
I'm surprised at this, because Yoav said he had all the money he needed to execute the business plan, and wasn't going to need to issue any more shares. I looked at the SEC website and recent press releases, and don't see anything about this, except for a filing in May that was to register shares for sale for shareholders who had acquired shares in private transactions. Can you point me to where you saw this?
I don't remember them saying that they were going to file early. I would expect it to be on Monday when it is due.
I can't even imagine what this will trade for by 2025 - I can only dream.
I'll be damned if I understand how or why this stock trades the way it does.
I don't think I've ever once seen increasing revenue and profitability lead to an ultimate decrease in share price. If it all happens as we and they expect, we'll all do very well here.
If they win that way, that's fine with me!
The thing is that they're not going to win, because there is already a substantial amount of related-party debt at very low interest rates, and as the company has recently expanded its inner circle, I'm sure there are at least a few in that circle who could be counted on to provide the necessary funds under favorable terms, assuming that such requirement were not to be excessive.
I think that's probably the most insightful post I've ever read here.
I'm looking forward to it. Will that be in verbal or written form?
It sure is. I'm holding my shares for three to five years until this company develops, although I have to say that I never thought the price would approach my basis of $.37 again, and I can see how some less resolute shareholders would be quite discouraged at this point.
I think there won't be any serious buying coming here until at least after the second quarter 10-Q is issued on Monday, and if the results are interpreted favorably, there might be some buying pressure which would hopefully drive up the share price. Short of that, as is discussed on this board at length, the market makers seem to want to bring the price down, for reasons that I'm never quite sure of, as I can't see why they'd want to screw around with a small company like this one. The answer always comes down to money, so I suppose they are making some by doing whatever they're doing, although the mechanism by which they're doing so escapes me.
Ouch! They're going to need to raise his salary just to cover his therapist costs!
I feel bad for the people who aren't buying this stock at this level. I don't think many people are aware of just how big this is going to be. I am, and I'm putting every dollar of capital that comes available to me into this. Yoav is building a technological empire.
Doesn't anyone get how big this is going to be yet?
I used to be, and I still like it, but I'm staying away from all biotech stocks right now until the FDA seems more stable. Their capriciousness has destroyed the biotech sector in the last six months.
Maybe that will create some buying!
I figure if it hits $4.00 it'll just about pay for all of the college education costs for my four young grandchildren!
They'd have to pay me a lot to be the moderator on that call!
I'd be in favor of a conference call format modified slightly from the one that the company for which I work uses, which is for a moderator to register on a sign-in sheet everyone who is calling in by taking their name, company which they represent (in our case, individual investor could be used) and their e-mail address, and then opening the lines to take questions from those who have registered and announcing who is posing the next question. It wouldn't stop fakes or nut jobs from calling in, but it might help to screen them to some extent.
It's not you that I'm worried about - it's others who aren't as eloquent as you and who might be aggressive and irrational. Difficult, reasoned and rational exchanges would be what I would hope for and would not necessarily expect to hear on such a call.