I took a small position to ride the MOMO play, but that play has appeared to have run its course. I have a couple of questions that I would like to present and get the boards opinion on.
Question #1 in the last report they listed all the shares being held by each entity. If you add all those shares together it comes out to 436,000,000 million shares and the percentage of shares equals 107%...didn't know you could go above 100%...interesting. Also, the report says that the OS is 401,181,550 with a float of 113,181,550. Where do they get the 113,181,550 float from if 436,000,000 shares (which is above the OS anyway) is being held by 7 different entities. None of this adds up. Anyone know of any accounting practices or tools to make this add up.
Question #2 if this company is so financially stable and undervalued why are they going to need to raise money in order to operate in 3rd Quarter 2020 and beyond. I'm all about making money but I do it by paying attention to details. It's there for everyone to see in the filings. Cash on hand at the end of FY19 was 31 million (I'm rounding the numbers), 1st quarter FY20 cash on hand 25 million, 2nd quarter FY20 10 million. Anyone see the trend here they burned through 15 million from 1st Q to the 2nd Q. Which means they have 10 million left for the current quarter, and if they don't raise money they will not be able to fund the remainder of the 3rd or 4th Quarter FY20. Check out OTC markets they just hit JHUD with a stock promotion warning. In the OTC what does it mean when a company gets thats warning....It means they are promoting the stock in order to dilute it to raise funds to continue to operate. Can anyone explain anything I missed here. Its all clear as day in the filings. They may have great revenue but they have also been operating at a net loss every quarter. Thus the need to raise funds. Good luck to anyone ignoring all the signs. If you need proof check out the filings. Also, more proof is the stupid news release that was put out today...
