Savvy Trades and Investments

[jtomm]

SRTS - Yeah, totally agree on the bragging about how things went as planned. haha, that was hilarious. It's like your sales were down like 60-70% in one quarter, when you were your most optimistic, and you still have no idea why. And you were buying back shares right before that collapse. Exactly as planned?! Ha, what a laugh. He did at least show a little humility when asked for projections and he said something like (paraphrasing) "well not to long ago we were hearing great things from potential customers and were incredibly optimistic for big sales growth, and then things turned out very differently, so we don't want to be in that position again. We'd rather under-promise and over-deliver." Something to that effect. I think much of the inventory build was they really were expecting this huge sales growth . . . . and got just the opposite.

Frankly, I would still love for there to be a legit explanation for that sales collapse from quarters ago, like, (I'm totally making this up) in some states increased regulations went in and we missed that, so until we have these oversight guys we've now collaborated with, we weren't able to sell any machines in those states. At least an explanation like that would make sense. But just inflation delayed purchases? I guess anything is possible, but that still doesn't make sense to me. And they've never even talked about getting back to the old revenue numbers, which also seems very odd.

The other possible explanations were customer concentration, and who knows maybe Silicon Valley Bank collapse hit either Senus or that one big customer very hard and the customer's line of credit went away or something so they couldn't expand anymore. In 2022, one customer was 81% of revenue! (down to 52% in most recent 10-Q, still a lot). SVB collapse was Mar10, 2023. Here's the 'concentration' paragraph from the 10-Q for Mar 31 2023: