Polar Power Inc (POLA)

[southacresdave]

Doesn't look good

I think the 8K filed pretty much made it clear that they will be needing to raise cash to stay afloat---if they even can. It'd have to be at sub $1 and then that will cause a reverse split in time (with I'm sure executive options repriced as is typical). They may get loans, but that doesn't do them much good if there aren't orders. There is minimal business for Q1 and that's after a bad Q4 and Q2 will be zero to start for April for sure and into May. As such, their cash levels will be dangerously low. The next problem, if and when a rebound in the economy happens (probably longer than anyone expects) is that their auditor will label them a going concern which will limit companies wanting to do large orders with them. Purchasing managers won't get fired for buying from Generac, but they may get questioned hard for recommending POLA if their finances are shaky.

Arthur kept saying they wouldn't build up manufacturing without the demand, yet he did just that and now is sitting on too much inventory, no plant running, and not enough cash to wait it out.

Sorry.

Even $1 for your shares is better than nothing if you can get out. I'd rather wager/gamble/risk that on some crazy move in a virus stock (or like the REIT that got beat down and rebounded 500% the next day) then hope POLA comes back.