InterCloud Systems Inc. (ICLD)

[why_meil]

It will be a long, long time before the dilution stops, if ever.

Their balance sheet tells the real story.

As of their quarter ending 6/30/18 they had $8M in current assets and $26.5M of current debt. A current ratio of 0.30. In other words at the end of that quarter they only had 30 cents available for every dollar's worth of current bills. The other 70 cents required to pay the bills obviously has to come from dilution.

At the quarter ending 12/31/2017 their current ratio was 0.39. So the most recent quarter reported actually got worse.

Now that's just their current situation. Longer term looks even more bleak. Their total assets as of 6/30/18 was $10.2M and their total debt was $44.4M. So they only have 23 cents to service every dollar's worth of debt. So even though the current share price seems cheap at $0.0018 a share, that's still an ICLD market cap of over a half million bucks. Far too expensive for a company with a net worth of negative $34M.

My prediction? Dilution will continue until the OS maxes out to the number of authorized shares. Then they will have no option but to reverse split yet again or to increase the AS, or for them to declare BK. Technically speaking, they're already bankrupt with a negative net worth.

I'm not saying that a trader couldn't possibly double their money short term getting in at the current price or a lower price. But for anyone thinking they can make money by buying this stock now and holding their shares for a year or more, the current $0.0018/sh could easily look like a ten bagger compared to the $0.00018 share price 12 months out.

Don't believe anything that comes out of Munro's mouth. Talk is cheap. In my opinion Munro is a liar. But even if he isn't, and is sincere in what he says or projects regarding Intercloud, the SEC filings will always tell the true story (well not ALWAYS, some CEO's get so desperate that they will actually lie in what they report to the SEC... but that could mean prison time if they get caught so most won't lie to the SEC).