High Risk / High Reward? No. Loss of all funds all but guaranteed.
Okay, so Paul turns 82 this year and the company made it very clear that Moller International is dormant at this stage. It was also said by David not too long ago that it would be silly if Freedom Motors pay the money 'owed' to Moller International as soon as they receive any form of funding. Rightly so.
Freedom Motors does not seem to be making any headway. The blog posts are tapering off and details of any avenues of funding for them are not forthcoming.
So:
Freedom Motors is struggling to find funding/partners. And remember that they took out a short term loan that they will need to pay back some time in the near future.
Only if they get funding/partners can they produce engines.(And they won't be able to do it from their current strip mall facility). So either they need to set up a factory or subcontract all manufacturing, testing etc.
Only if they produce engines and become financially stable can they pay money back 'owed' to Moller International. That means they need a market for whatever they are trying to sell. A sustainable market. The 5 fans that want gen-sets or engines for their dune buggies aren't going to pay FM's bills.
Only if Freedom Motors pays Moller International money can MI complete development on a Skycar. Which means making profits and not cutting your own throat to pay off your lenders.
Only if MI can demonstrate a Skycar can they perhaps also get funding/partners. That means building a new aircraft and testing it.
Only if MI gets funding/partners can they perhaps start selling Skycars. Again, a facility needs to be set up or all work needs to be subcontracted.
There is a lot of "IF's" there, but lets pretend our surnames are Foss and we believe without any shadow of a doubt that all of this will happen, how long is all that going to take? 10 years? 15 years? 20 years? Either way, even if it is smooth sailing from here on out the Doc may be 90 years old before Skycars start selling. And I am being generous with time here as aircraft development, testing and certification alone can be a decade.
How many 90 year old CEO's have you met? How many 82 year old CEO's for that matter?
10 years is too long for many investors to wait to see any type of return on investment. Especially in penny stocks. And how long have some people been investors? And how much are they currently down?
Another argument is always made that 'someone' could buy Moller International. But what would that person be buying? A few fiberglass mock-ups and desktop models? Al the other equipment owned by the company is most likely so outdated that they aren't worth their weight in scrap. Any hardware and software developed over time could also be unusable and things like flight software is basically available over the counter these days. Any person with the money and a dream to develop a personal VTOL would rather start from scratch, like the hundreds of companies that currently do, than buy a company who's technology dates from the 1960's.
I argued with a fan one day about MI's viability and future. He said it was like 'buying a lottery ticket.'
Well, I would rather buy a lottery ticket today than invest in this company again.
