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sector rotation. wait for EWI to level out, then we'll be in free-fall again :)
great news, that means insiders will finally be able to offload higher volumes! :)
Opinion below:
Most drone companies are a solid investment, at least in comparison to RCAT. But this forum is about RCAT. Just looking at the face of it: bought 5 or 6 different companies, and it's down to 1 now. Owners of the companies that were spun off to UMAC are retired now (as was the plan), or at least no longer involved in the company. UMAC was spun off as the consumer segment, and all they are talking about is going after defense contracts now. So, the scam continues at UMAC just on a smaller scale.
I'm sure there will be more mergers on the horizon to justify further dilution. I hope Teal owners are smart enough to sell into any strength to make sure they end up with something at the end of all of this. Because eventually RCAT will not have enough firepower to manipulate the stock price to maintain NASDAQ listing to offload shares into some ETF that just buys it blindly for "diversification" - or the dumb fools here :)
You forget the purpose of this stock - it's an exit vehicle for failed drone company owners. It will never go up, since owners will start selling into any strength. the only thing you can count on is that they will keep manipulating the stock to surge over $1 to prevent a de-listing every now and so often.
The higher it goes over $1, the more you can short it. The more it goes below $1, the more you can close the positions and/or go long.
(not financial advice, obviously)
I've been saying this for years, but the bag holders in here just won't comprehend. Fine for me, I've shorted from the very start and I've exited my position several times and re-entered after the press releases that lured in even bigger idiots. Part of why posting here is so much fun.
To be honest, I still hope that this kind of theft is going to be brought to justice, especially since it's so brazen and tax payer funds are involved now. Something should be done eventually - one can only hope.
After reading this 10Q I'm wondering at which point the participants will be arrested for theft. Consumer segment has 1.1M of revenue and 1.7M cost of goods sold? 100k of marketing a month? So they were basically stealing about 0.5M a month from operations, because a trading business doesn't buy higher than they sell goods for, so they are overcharging themselves and sifting off cash. And a YouTube channel of their scale doesn't cost 100k a month to run.
And that's just the consumer business ("discontinued operations"). The ongoing operations are trying to make you believe that a $15'000 drone costs $12'000 to make (comparable systems are sold at BestBuy for less than $1000).
Despite all of that, they're also paying out stock based compensations to the tune of $3M a year. It's just laughable. Can't wait for the next pump to short this piece of trash on the way down again. $0.8 is still a $0.9 premium
Amazon re-invested in the business, RCAT into executive compensation. Amazon's marginal cost structure improved with growing revenue, RCAT's marginal cost is getting worse. It doesn't take a genius to figure out the reasons behind it, or the future trajectory. RCAT got a life-line with the current environment, but that will run out and then the stock will completely unwind.
The people inside the company know this, which is why they're selling everything they can and pulling as much capital out of the company as possible, while pumping the stock with PRs such as the one yesterday.
You don't actually have to over-analyze this. Just look at the fundamentals: A company that was formed through a reverse-merger bought several drone companies while bringing no value to the table (they used your money for it after all). All acquisitions were advertised as strategic and visionary to some combined benefit and all but one have since either unwound, closed down or passed on to another company. Meanwhile the owners exited with plenty of cash which the stock paid for (and continues to pay for) by decreasing in value.
And you're here telling me some story about increasing revenues and making comparisons to Amazon ... just like the owners, with the exception that you're not in on the gravy train but funding it :)
they still aren't making money. notice how they only mentioned revenue?
profit is still basically zero, so no matter how much revenue increases, they're still treading water while paying themselves millions and diluting shares.
I've been telling you something is going on for years. They are slowly divesting of their company ownership on your dime. It's a slow-motion rug-pull :)
... based on the news of acquisition of a company that they're now desperately trying to get rid of.
You know you've been saying that at $2, $1.50, $1 and now $0.5. Ironically, the owners are cashing out rapidly to the tune of several million dollars each quarter. They don't seem to agree with you :)
'tis but a scratch, eh? :)
Are we there yet? :)
It was obvious from the start, but nobody believed it. The silence by bullish bagholders is deafening :)
Can't say this is surprising. Is it too early for a victory lap? In magic, we call this one the prestige.
don't worry, there will be more press releases about nothing. they need to get it over $1 or they'll be delisted soon.
Do you guys think the impeding NASDAQ deficiency notice is the reason for the recent rally? Or is the price manipulation not yet obvious to everyone.
The owners have the least to lose. That's what "going public" means - you sell the company at a multiple. It's also called "taking skin out of the game" or "taking money off the table".
Going public makes sense to the investors when your capital requirements exceed your cashflow, due to rapid growth - they get rewarded for providing the risk capital. The owners have enough money to fund growth themselves, but they're not. I wonder why that is?
On top of that, you're not seeing any growth, are you? So, where is all that money going? It's going into bonuses & salaries. Seems that the owners and I are in agreement: the companies have run their course, and the best way for them to make money is to leverage the hot news of the day to look for more greater fools to pay themselves insane bonus packages by overpaying for product, overpaying salaries, overpaying for other daily operations and - last but not least - selling shares. It's how government contractors and corrupt government officials typically make money, just in this case it's the investor that's getting fleeced instead of taxpayers.
Anyway, all of this is probably going over your head. In the meantime, enjoy watching the ticker go down, down, down.
As The Joker once said: "It's not about the money". By the way, in case you missed it, the owners are selling again - good signs for sure!
I don't know what's more surprising - Prigozhin having an accident, or RCAT returning below $1.00. Any bets on when the delisting happens?
oh dear, that ER though ... :)
9.8M in sales on goods that cost 10M, while using up an additional 27M to produce those sales. What a business ... LOL
To tell you the truth, I can't complain. My concern is just how this friendship will progress once all your cash has moved to my account :)
You have a very unhealthy obsession with shortsellers... It's clouding your judgement. Down 10% today, I guess you'll need to wait for the next pumpy press-release to celebrate again :)
I will surely take financial advice from the person that just lost 10%, and will be down 30% before the week is over.
If I was you, I'd think about who bought into the close yesterday and consider why clear-as-day insider-buying is happening on such a low-volume stock, and what will happen when (not if) the FTC starts looking into this.
Oh, and wake me up when they actually post good quarterly results. Until then, this stock is still down 75% from the reverse merger price, and will continue to go down notwithstanding shot-term pump-and-dump and insider trading games.
Isn't a PR that 200 drones were sold an admission that you have absolutely no sales? This company has a $100M+ valuation and boasts about selling 200 units? that's a $50'000 profit at best.
I wonder why there is good selling into any strength? Delisting in 2023 or 2024? Anyone taking bets?
You sound confused. SBF stole money. I don't think they stole money. They also warned you in every prospectus that you'll lose it all. It's the thing that RCAT and me have in common :)
I am an industry veteran and I know and have met and done business with most involved in RCAT. So I am intricately familiar with how the product (the stock) is being sold as well as what the reality of the situation is. It also isn't so hard to look up these individuals and how they have a continuous track record of fleecing everyone for their money. Or to come to the conclusion when a no-name company and no-name owner buy up established companies for a very risky multiple over what they are worth. The obviousness of it all bundled with your cluelessness is the main source of my laughter.
I am also not the only short, all my peers are short too, they just don't find the enjoyment in watching you lose it all. Me, on the other hand, I am having the time of my life :)
Merry Christmas! & rocketemoji.gif lol
The point being that they are continuously behind the curve. They were a hobbyist company while the hobby sector was booming. Now they are a military company since there's a war going on with drones (none of theirs, but who's counting ...). They will most likely have a ready product just in time for the cease-fire.
Crickets :)
Oh well, merry xmas to you all. Don't forget to send the RCAT leadership team a christmas card, since you already sent them everything else. LOL
It's at $0.81 now. Time to buy? :)
mel_gibson_hold.gif
lol
Consumer business sold off. Net loss of $10M, with $4M in sales, over 6 months.
... and the stock price is below $1, which means we're in for a split or a delisting. Both are obviously very positive indicators :)
Still holding? Please tell me you're still holding!
in their latest PR, they are now calling themselves ...
"a military technology company that integrates robotic hardware and software to provide critical situational awareness and actionable intelligence to on-the-ground warfighters and battlefield commanders"
I am lost for words. quarterly report tomorrow. I have $50 on "more bonus paid than revenue collected", any takers? :)
I haven't traded this stock in almost a year. It's like printing money at this point :)
I hope you sold by now? My exit will be at $0.05
All the cash in hand is from selling the shares in the first place. They are burning through it by paying it to themselves at 3-4x the rate than the revenue from all companies (not profits ... revenue).
As stated years ago, this is an exit vehicle by founders of failing drone companies. The shorts aren't taking advantage of you, the founders are. We're now close to $1 (minimum price to stay on NASDAQ). In a few months this will be delisted, and I'll get to the finishing act: Me telling you that I told you so :)
That's because they pay themselves more than that on a quarterly basis (and before they reward shareholders), and we all know this is a one-time deal. This one is going to zero, gentlemen, as was predicted.
RCAT is down 44% the last 12 months, and 25% year-to-date. the company is still making a higher loss than revenue, and has paid for those revenues as if the companies are as profitable as they once were.
You're right, we do invest differently. I generally don't subsidize someone's exit vehicle :)
Nothing has changed since they reverse-merged. In fact, it was the business plan from the start to take a bunch of drone companies that are in decline, package them as a "investing into drones" opportunity and provide a nice exit vehicle for the owners of these companies.