Red Cat Holdings Inc (RCAT)

[nickmerck]

The owners have the least to lose. That's what "going public" means - you sell the company at a multiple. It's also called "taking skin out of the game" or "taking money off the table".

Going public makes sense to the investors when your capital requirements exceed your cashflow, due to rapid growth - they get rewarded for providing the risk capital. The owners have enough money to fund growth themselves, but they're not. I wonder why that is?

On top of that, you're not seeing any growth, are you? So, where is all that money going? It's going into bonuses & salaries. Seems that the owners and I are in agreement: the companies have run their course, and the best way for them to make money is to leverage the hot news of the day to look for more greater fools to pay themselves insane bonus packages by overpaying for product, overpaying salaries, overpaying for other daily operations and - last but not least - selling shares. It's how government contractors and corrupt government officials typically make money, just in this case it's the investor that's getting fleeced instead of taxpayers.

Anyway, all of this is probably going over your head. In the meantime, enjoy watching the ticker go down, down, down.