The problem isn't that GIGL isn't profitable; the problem is that the man responsible for looking out for shareholder interest is out of touch with reality and - as you've discovered first hand - overvalues the company. I suspect that the annual report will show that he no longer has that luxury and has received a fresh dose of reality.
From Bloomberg today: "In light of the news that Uber's S-1 filing for its IPO may come today, here are a few random IPO thoughts. 1) The ugly performance of Lyft shares since its debut is perhaps a sign that investors still aren't irrationally exuberant. At least the public markets aren't. Or at least if they are, it doesn't hold a candle to the boom in the late 90s. 2) Speaking of the late 90s, the scale of this new IPO class is breathtaking. Alison Griswold, who writes a newsletter on sharing-economy companies, points out Amazon lost $2.8 billion in its first 17 quarters as a public company, whereas Uber lost $4.5 billion just in 2017. Pets.com, she points out, only lost about $150 million total and Webvan, an early online grocery player that was unusual at the time for its high level of physical infrastructure costs, only lost $620 million. 3) You hear a lot about how the paucity of IPOs overall means the public is missing out on the chance to buy young growth companies, but obviously there's plenty of opportunities to buy speculative companies pre-maturity. 4) And while Lyft has had a rough debut, the big picture is that there are still plenty of opportunities to buy IPOs before the companies get huge. Check out a stock like Wayfair, which is up almost five-fold since its debut in 2014. There are tons of examples like that."
AI
