APT MotoVox Group Inc. (MTVX)

[bullethole27]

I don't disagree with any of those numbers but I do think you have to take certain things into account when looking at the filing. FROZ accounts for 100k of the APT net loss since this is a joint filing. That 100k will not be on the next filing. Now we are at 1M. Legal fees for the merger exceeded 400k. These will not be needed in Q3 and beyond although they do have ongoing litigation. This might knock off an additional 300k putting us at a net loss of 700k.

While this is not a profit I did not expect the company to be profitable at this stage. They have outlined their plan to increase margins and grow revenues. They have explained the reason that revenues were reduced this year several times now. When a company is at this stage the decision to invest should be based on their potential to grow into profitability. I believe APT has the products and infrastructure to do that now. The accumulated deficit is the result of their investment to reach this point. Yes it will need to be paid off eventually but you do not have to pay it all at once.

Take a look at the product portfolio and the products forthcoming, the gross margins and the current assets to debts. Keep this in perspective of a company that has only been selling products for three years and make your decision. No it's not Google, but there are plenty of companies on the big boards with balance sheets exactly like this one with less compelling products and growth opportunities that have market caps over 1B.

The OTC is fickle, people get down on a stock and it plummets fast because there are few true longs down here. However that works both ways. Once the company presents its contracts, its prior financials and its projections people can come rushing back just as fast as they ran away. In the end it's about investor sentiment and all the good news is yet to come.