CGrowth Capital Inc (CGRA)

[Prudent Capitalist]

Can't ignore the fact that the fins out Friday for CGRA proper were UUUUUgly. Serious growing losses and cash burn. Not to mention the (-739,000) reduction in stockholders equity.

Cash on hand dropped from $262,508 on 12/31/16 to just $83,096 at the end of the first quarter. And, current assets are just $551,675, almost half of which is listed as "interest receivable." Interest receivable? On what? Is CGRA actually loaning out money such that they are earning interest and have "interest receivable"? CGRA is certainly paying interest on the high interest junk bond debt, and the fins detail notes payable and interest payments on indebtedness, but no mention of anything on which the company is earning interest. And, no reference to any interest income on the revenue and cash flow portion of the Q. Yet, now "interest receivable" makes up almost half of current assets? Hmmmmm.......

There is the usual numbers for the Admin. and Mgmnt. fees paid out to Bill Wright and the entities he controls, which are recurring each quarter, etc.

And, the notes detail the Dolomite assets, which are listed with a net value of around $29,000 - $30,000. What ever happened to the supposed $2.7 Billion in proven Dolomite Assets per the PR and Bill Wright's statements therein? LMFAO!

All in all, not impressive at all, and another truly disappointing Q when compared to the narrative and all of the PR's and pronouncements out the CGRA. Certainly not anything which suggests any additional value here over and above the current share price.