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Re: None

Thursday, 07/27/2017 5:12:25 PM

Thursday, July 27, 2017 5:12:25 PM

Post# of 54438
Please check my DD (and opinions) here. I have only been tracking this one for about a month.

BAD – Delayed 10Q and 10K filings: There are many Stop signs out there in Pennyland. This does not impact the value or potential of the company. It might deter some buyers.

GOOD – Rossi to retire 100M common in exchange for 1M preferred. Reduces float of publically traded shares so any good news causes an increased squeeze. Bad news reacts the same in the opposite direction though. From a valuation perspective this doesn’t really do anything though other than cost the company money to file paperwork.

GOOD – Pending the audit, but it was reported that the company is practically convertible debt free. That means dilution is likely to be minimal over the short term.

GOOD – Listing on the Canadian exchange will open up avenues to additional capital and trigger an agreement that is already in place to provide operating capital.

BAD – The company does not own any patents. This is normally the majority of the book value for pennystocks. Rossi doesn’t get any royalties though, so that isn’t horrible.

GOOD – Alpha Helios provides a solar play into the EV market. I would have liked to see at least a parent pending for this to account it as value though.

BAD – Even with a $5-10M revenue target and the current 18-22% gross margin that $1-2M profit might not cover operating costs. I believe that breakeven is far above that level even with the June PR about decreasing manufacturing costs by 18% which could mean gross margins are now more like 33%. I suppose that is where the $50M target comes into play but not sure of the proposed timeline on that. I did get scared by Note 12 in the last 10K though because it made it sound like Rossi (or maybe one of the other two employees) were being paid millions (albeit in stock) in “service fees” which destroyed the bottomline and diluted the shares from 67M to 222M. I sure hope the next report does not contain a $3M figure like that one.

GOOD – The August 4th meeting…although I cannot find any PR on that topic. If someone can point me to the source of that information I would appreciate it.

Personally, I do not yet own any shares. To me the chart seems to indicate that a $0.03 entry point may be in the future, but for the past month maybe it will hold $0.035. Whether it be $6.6M market cap or $7.7M, I am still looking for a few more pieces before jumping in. I need to believe it will be a $15M+ company before getting wet.

What do folks around here expect to see in the Q/K which would fuel a run?
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