Sunday, April 19, 2015 4:19:38 PM
Alright. As most retail investors I read/watch CNBC for entertainment purposes, certainly not for stock advice, but this time it hilariously delivered on both since I thought immediately of SLNN.
Five ways to spot a dead company walking
http://www.cnbc.com/id/102596821
1) Declining revenues and mounting debt
Dead on for SLNN:
Revenues have been declining every quarter for the last 4 quarters.
Liabilities have been going up every quarter for the past 3 quarters, after having a ton of debt converted 4 quarters ago.
2) Overexpansion
Again dead on for SLNN with spreading all the resources between Challenger, Mustang , Model S, Camaro. Not to forget 3 versions of the mustang. Even their own fans beg them to focus on Mustangs.
3) Improbable new revenue-generation schemes
Again and again dead on. Their own investor presentation taunts "Multiple Revenue Stream". They go as far as mentioning 8 different revenue streams all more improbable than the other.
4) Corporate bonds with ballooning yields-to-maturity
Now it becomes scary familiar to SLNN. They even mention anything higher than 20% interest is a big red flag. Saleen has notes with over 22%.
5) A sunsetting industry
Car tuners go bankrupt every other day. It's well known.
I thought this was pretty funny.
Five ways to spot a dead company walking
http://www.cnbc.com/id/102596821
1) Declining revenues and mounting debt
Dead on for SLNN:
Revenues have been declining every quarter for the last 4 quarters.
Liabilities have been going up every quarter for the past 3 quarters, after having a ton of debt converted 4 quarters ago.
2) Overexpansion
Again dead on for SLNN with spreading all the resources between Challenger, Mustang , Model S, Camaro. Not to forget 3 versions of the mustang. Even their own fans beg them to focus on Mustangs.
3) Improbable new revenue-generation schemes
Again and again dead on. Their own investor presentation taunts "Multiple Revenue Stream". They go as far as mentioning 8 different revenue streams all more improbable than the other.
4) Corporate bonds with ballooning yields-to-maturity
Now it becomes scary familiar to SLNN. They even mention anything higher than 20% interest is a big red flag. Saleen has notes with over 22%.
5) A sunsetting industry
Car tuners go bankrupt every other day. It's well known.
I thought this was pretty funny.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
