bobst2003 Wednesday, 10/21/20 06:20:50 PM Re: None Post # of 822 We are screwed. Boy i hate stocks cost me 10K in a week Do Not Buy Westwater Resources on the Dip 10/21/2020 8:15am EDT By Will Ashworth, InvestorPlace Contributor On Oct. 6, InvestorPlace’s William White highlighted the Trump executive order that sent Whitewater Resources (NASDAQ:WWR) stock up 25% to a 52-week and two-year high. Since then, despite the excitement surrounding the White House’s desire to have domestically produced graphite available, WWR stock has lost 63% of its value. construction workers point at mining equipment in the near distance Source: Shutterstock There are times to buy on the dip. This is not one of them. Here’s why. A 40-Year-Old Business That Can’t Make Money Right there in the first sentence of the company description section of its 2019 10-K is the statement that Westwater is a 40-year-old company that was originally incorporated as Uranium Resources in 1977. Now go to the balance sheet, and you’ll see that it’s got an accumulated deficit of $302.4 million, up from $291.9 million in 2018. So, that’s an average annual loss of $75 million over the past 40 years. If you look at the opinion statement of its accounting firm, you’ll see more bad news. “[T]he Company has no revenue, has suffered recurring losses from operations, and has relied on debt and equity financing and asset sales to fund its operations, which raises substantial doubt about its ability to continue as a going concern,” states Moss Adams LLP on page 66 of Westwater’s 10-K. About the only ray of sunshine is the $253 million in U.S. net operating loss carryforwards. However, the company estimates that $221.6 million of those carryforwards aren’t usable by the company, leaving the actual usable amount around $31.4 million. But first, it has to have the actual income to offset. That’s going to take a while, even with Trump’s assistance.