I agree with you. I think this company is turning the corner, but it has to be very careful because, like with Mr. Zs famous “we are over three years away” comment that sent us from .10 to sub penny the first time, they do not have much room for error here…
Our recent slide, IMHO, has nothing to do with anything other than the newly printed 20M in unrestricted shares that has hit the market. It is intoxicating for a company to print off shares to pay debts, especially when you have no cash, but these are the types of things that happen when you do - you give investors shares they hold on to them and wait for them to appreciate, you give debt holders shares they sell them. They don’t care about crashing the s/p and just want to convert to cash A.S.A.P.
When I said a few weeks ago before the recent run up that we were going to see “headwinds” from that issuance, this week’s action was what I was referencing…now we just have to wait it out till the selling is done…
However, I agree with you - nothing bad has happened to justify the move from the end of last week - so this is a buying opportunity for long term players for sure.
As a LT holder I hope the 20M sells off and fast and gets it over with and back into the hands of investors soon…if it tanks the stock price more, OK, because it isn’t falling on any real news or problems with the company…so I will gladly be purchasing those shares as well.
However, management must learn from this, and not issue unrestricted shares to pay debts - toxic financing will kill the s/p and kill the company’s ability to use shares for future financing as well…if you have to issue shares issue restricted ones and keep unrestricted issuances to very small issuances (certainly not in amounts greater than 10% of the O/S amount at the time)….
however, that said - I get it, you need cash you have none, and shares are your only commodity- it is a tough position to be in - that is why it is so important to partner with a much larger established giant for the battery tech and get them to fund this effort in exchange for royalties, guarantees, etc., - keep the company alive long enough to see this project out to turn it around, that’s the goal.
I know management is working on that along with the DoE angle as well - I really think the tech is promising and will ultimately save this company- they just have to be careful in getting us there - it does appear the company is a bit ignorant of how the investment community on the OC works, but hopefully this IR firm can help them with that….hopefully, that kicks in as well in the near term and we get past these recent issuances and start building back the s/p…right now we are in prime accumulation mode again.
Following the charts is like driving a car forward while looking in the rear view mirror.
