Red Cat Holdings Inc (RCAT)

[nickmerck]

Oh dear. I know my role here is to play the devil's advocate, but seriously, how can you throw 6 figures out the window like this.

- Q1 revenue down 30% YoY. COGS flat. That means sales profits down 50% YoY.
- Q2-Q4 revenue doubled, yet sales profits down 20%.
- Investment income is more than profits
- net loss higher than revenues, while revenues are declining
- Admin fees and stock-compensations equalizing revenue

... and that's with them having chip inventory (apparently) until end of 2022. What happens if sales increase, or their inventory goes low? Their costs will skyrocket (chips cost anywhere between 300% to 1500% more than what they used to).

I don't have any net position, at this level the stock price could go either way short term. But there is absolutely no way that this would go anywhere except zero: They have 50M in the bank, and they will blow through it in ~2 years, and then dilute your position some more. If this had much room to run, they wouldn't be pulling cash out at such a rate.