InvestorsHub Logo
Followers 14
Posts 435
Boards Moderated 0
Alias Born 08/31/2014

Re: The_Free_Nebula post# 3547

Wednesday, 02/25/2015 4:19:24 PM

Wednesday, February 25, 2015 4:19:24 PM

Post# of 8579
Nebula, I believe that you're correct, though I think that you could have gone even further in your comment. I think we were all taught early in our investing years that, when there is uncertainty, the trading in any stock presumes the worst result for each uncertainty. Accordingly, even if VHUB issued a forecast that included some of its debt being repaid by stock-issuance (in other words, dilution as the term is most commonly understood), the stock price would still tend to increase.

The challenge to the company's being able to produce any positive-looking definitive forecast for cash flow, particularly debt repayment, is that they'd need to explain the recent quarterly decline in sales (yes, I do realize that most often a quarter of the fiscal year is best compared to the same quarter of the prior fiscal year, but this company is on record via 10K disclosure that it does not believe its sales pattern to be seasonal). For the sake of the bulls on this board, I hope that the company can honestly, and will, issue a press release that sales are back to trending upward in this third quarter of their fiscal year, noting with that press release that the company has already stated that the gross margin on sales is improving due to less labor involved in making at least some of its products.

Overall, it always amazes me that most of the time when investors are awaiting quarterly results and thinking that all their questions will be answered, the most typical conclusion of one set of quarterly results being issued is that the investing community is right back in the mind-set of counting down until the next quarter's results are in.