Stevia Corp (STEV)

[threadworth]

Because they are burning capital in every operation they expand to and have yet to yield a return. Expanding to aquaculture and hemp are only helpful to the bottom line if the company can realize a profitable return from stevia operations, which it cannot. If it were profitable, these expansions could potentially be leveraged to increase profits further. Since the company is not profitable in any operation, instead these expansions serve only to distract George from what is truly important: making stevia profitable.

It's really easy to start a business, it's really hard to make it profitable. Most people will quit and try something else before they see profitability because it's easier than figuring out how to get to the next level at what they are doing. That's exactly what George has done with Stevia Corp. He failed for years to make stevia profitable and since he doesn't have what it takes to figure it out, he's distracting himself (and shareholders) with "expansions," raising tons of capital and paying himself an insane wage in the meanwhile.

Everyone who invested in STEV in 2013 was partially attracted to the company because George purchased a large amount of shares with his own money. Turns out he's able to afford it because he pumps his company, raises millions in toxic financing, and then pays himself back with interest in wages that haven't been made public.