There's a real risk Signet's financials will hurt, not help.
Everyone is expecting the updated financials to push the stock price significantly higher. Released financials increase stock prices when the results exceed expectations.
If my understanding is correct, Signet has three years of financials to get current with the SEC.
What are Signet's Gross Revenues over the past 3 years? I believe they are $0 because the company has not had any revenue generating operations that we're aware of.
What assets will the financials list?
I don't believe the patents can be included as assets because Signet only holds Options to the patents, not ownership.
Since the company has not detailed the specifics of the option agreements, we have no knowledge of what the agreements are between Signet and FIU. Could it be that FIU has granted Signet an option to find the licensing partner and will pay Signet a fee for the successful close of a licensing deal?
If yes, what is Signet's track record of signing licensing deals? I'm not aware of any deals the company has completed.
Does Signet own any other assets?
So we're talking about a company that hasn't been current with the SEC in a couple years, yet said they would be current with the SEC in 4th quarter of 2019, but failed to get current with the SEC in 2019.
What kind of cash assets does the company hold? Any other real property?
Even the InvestorsHub site describes the business of Signet as "media-television services" which has nothing to do with any of the technologies the company has options on.
As much as people are hoping for a big bump for getting current with the SEC, there is a very real downside risk as well.
My concern is that updated financials will reveal a much skinnier company that people perceive with no revenues, no profits and minimal actual assets.
If that is the case, why would the stock jump?
As Jim Kramer and Warren Buffett advise, "you need to know how a company makes money and profits."
Updating the financials will reveal a lot, but it may not be the "good news" everyone is anticipating.
