Verus International Inc (VRUS)

[Renegades17]

AS/OS ratios for growth companies

One other thing to keep in mind is that for most growth companies, the ratio of AS/OS is at least 4:1. Tesla's is almost 12:1 and it's a capital intensive business. So VRUS' current ratio falls within norms.

As far as the R/S is concerned, they had one approved in late 2016 and never executed it. They're just keeping their options open IMO.

I don't believe this is like other serial dilution stories as the management team isn't paying themselves big salaries. Anshu, in particular, really only makes serious money through the stock. Furthermore, the company is close to breakeven on an operating basis, so it's not a cash consumptive operation excluding acquisitions. It's quite likely, ignoring charges, that the company had positive operating income in Q4 if the performance in Q3 continued.

The company should have a conference call ASAP to explain their thinking. IMO, that's the big problem here. Mark expects investors to be patient, but they need to communicate a lot better. Tweets and PRs aren't enough.