"they 'supposedly' make so much money with Personal Protective Equipment because of COVID-19 global PANDEMIC?"
"So much money"?:
Huh? Jimmy said on May6 he just received $10m in PPE orders..Btw, he never revealed those contract specifics nor associated delivery times..(ie--monthly 2 yr contract?) and that he began the import "feeler" ordering process approx two months earlier and those (limited) quantities sold out, likely prompting Jimmy to get serious about expanding of testing PPE opportunity.
In mid-March, Carryout's core group of $4m yearly resturaunt clients began shutting down, who btw, require PPE product to reopen..So, in Jimmy-speak, his approx 2 months likely 6 weeks..or less:)..And Jimmy stated he began importing...meaning, he just started the order process..A reasonable amount of time for airfreight to arrive approx 2 weeks..Sea about 1 month..And that's if stock available..That puts us into April, the start of Q2, so likely no Q1 Carryout PPE revenues recorded, imo..So, i don't see how those PPE "millions" have shown up...yet..
Meanwhile, financials indicate SGMD is cash poor..If memory serves, SGMD about 767m OS when Jimmy started PRing BZRTH rescinded and moving forward with Budcars initial $700k investment..OS 1.09B as of 4/30 and expect another 100m+ when financials reported..
Jimmy raised the AS because he needs to have realistic mechanism to raise funds..100m dilution presently drums up $250k funds..And Jimmy's pumps, if honorable intentions, require much more than $250k dilution..Budcars did about $186k in March revenue.(SGMD holds 40% interest)..Peanuts, but Apr/May percentage gains look promising..So, let's say Budcars Sacramento does $5m in 2020..ain't too shabby..Now, can Jimmy parlay that model into other territories, bump ownership option to 70%, and still be profitable? Idk, but if so, it will require additional dilution and buy time for revenue streams to build..Btw, couple China PPE companies i contacted require 50% deposit..more dilution required initially to get the ball(s) rollin'.
There has to be significant additional dilution in the months ahead for Budcars/PPE planned expansion.Has to be..Upcoming Q not going to be impressive..Yearly Q1 is historically soft, $572k last year..and little to no PPE revenues included imo..Maybe modest Budcar Feb/Mar revenues? The expectations start in June30 Q filing...What results does Jimmy then confirm vs dilution!
Increased AS allows Jimmy deal making opportunities to acquire delivery locations with restricted shares..When and if Jimmy establishes dependable revenue streams, i wont be surprised to see RS..which acceptable if solid biz model.
Many previous vocal longs gone due to Jimmy's handling of the 2 year BZRTH acquisition chaos..Two years of BZRTH PRs and lofty revenue projections and BZRTH finally gets acquired, only to be rescinded a short time later..???..Geezus Jimmy!!! ..Btw, keeping my eye out in upcoming financials to see if SGMD confirms the 102K BZRTH shares received as part of rescission agreement.
Jimmy lost most credibility with BZRTH fiasco..Bigtime..Zero defense..That said, SGMD over the years has provided significant trading swings to make..and lose..money..SGMD price beaten up bigly, and under seemingly daily dilution pressure..Question is, what if Jimmy can pull this off, even 1/3-1/2 of what he pumps? Idk, but certainly worth eyes at minimum.
As each location opens, we can at least verify Budcar progression..If Jimmy genuinely has short term $10m PPE orders, he will start using verifiable sea shipping transportation..And we should get a grip, via Import Genius/Panjiva, on some PPE shipping product volume in Q2 if Jimmy shootin' straight..No way he stays with (unverifiable) $10m airfreight manifests short term if $10m order ready to go...PPE can feasibly accompany the multiple Carryout paper product shipments..Confirming huge Carryoutsupplies PPE sea transportation means Jimmy's pump has significant substance..)
Just spouting viewpoint..glta
Jimmy most always posts financials AH..and please, no 45 day covid extension surprise.
