Alpine 4 Holdings Inc (ALPP)

[MikeyInTheD]

I agree with the long-term thesis of share appreciation and profitability. I don’t think a dividend should be priced into the stock for multiple years. The company is low on cash and still in a burn position. They have announced intentions of completing two acquisitions in 2018 which will tap into the cash reserves further. There is still a pile of unattractive debt on the books that will need to be paid down or refinanced at better terms eventually. The idea the business will be throwing off enough cash to sustain a dividend makes the rest of an otherwise great post seem questionable. OTC companies often tout the coming of a dividend or share repurchases program to gain attention. Very few ever deliver on these promises as the cash isn’t there to back them up. A quick review of the balance sheet shows the company would have to borrow cash at toxic terms to return money to shareholders. I think the current fair value is $0.35 so anything below that is a gift. I’ve made additional purchases to add to my core position even after being fully invested in the idea. The shares are just too cheap here. It wants to settle around 10 cents so buy anything below that even if you aren’t going to stay around for years.