JanOne Inc (JAN)

[Principian]

ARCI is a classic Value Trap

No way in hell this stock can be considered a strong buy. You cant just put a fresh coat of paint and a wax job and then somehow believe this thing has any value at all without looking underneath the hood.

In another month, ARCI has a good chance of being kicked off NASDAQ for not maintaining the share price minimum requirements. Their timeframe to comply is about to runout come mid september.

They are somehow betting they can sell off the remaining cash generating operations and then somehow are going to swing into being a Technology Company??? Go read some of my earlier posts on what it takes to be successful in the Technology Geotraq is doing. Lets take the high end of a sale $50 Million. To play in the Telecom Arena on with any new product or service they will have to spend twice that amount just to have a seat at the table. There are a few startups with limited capital that do make it... but they all have the same kinds of characterisitcs I stated before and Geotraq lacks them all. At this point they have a single sales guy that really has a slim chance of even getting a product to work let alone function in the manner they think it should. My opinion is ARCI will be bankrupt within a year if not sooner. I researched the additional tax liability CA levied on them. It is clear if they eventually lose the appeal... they will have to file for reoroganization and the amounts they owe will force them to close up shop.

Its clear the executives are winding this company down and are draining the real assets and will continue to do so. I mean just look at the huge drop in Cash and Cash Equivalents. $3 Million walked out of this firm in the last 6 months.