KERN is going to join HLIX for a New Years Eve Celebration.
Oh yeah, KERN is going to fall for sure. I never looked at KERN so close before. They have a deceptively strong stock price. They don't have 12M shares outstanding. The AMPLE purchase includes 32M shares which will hit the market as restricted shares for now soon, so they have half our shares already. They paid 5 times Amples revenue and will only get an immediate $8M for that. Ample has some problems.
Plus, 3M shares become unrestricted at the end of June, next month. Yep, I'm certain they are going to come down to join us. We only have about twice their OS in actuality. They are going to have to do another capital raise for sure. Hopefully at a lower stock price, but dilution is in the cards for them too. They'll be out of cash completely by end of the year. No way those warrants will exercise at $11.50. Another SPAC dream up in smoke, and that I'm very confident about.
HLIX is a better buy. I may actually buy another 10,000 shares here at this price IFF it stays here before some great other bargains out there. So many cheap things right now.
I predict at this time next year, HLIX will be more expensive than KERN. The truth is going to come out of the shake. We are at a p/s of close to .5 for my reasonable 2020 $20M sales. Not out of ballpark with KERN's unrealistic expectation of $27M. With their true 50M plus OS count, it's safe to say they should be priced at 24 cents right now if the market were to value us together properly, but they have a low float right now. Price discovery isn't actually happening over there yet. That's another part of its illusion. Just watch. HLIX is going to surpass KERN.
HLIX might know more than we give them credit for. Not crazy about the financing, but I do like this price more today than last week, that's for sure.
