Red Cat Holdings Inc (RCAT)

[nickmerck]

After reading this 10Q I'm wondering at which point the participants will be arrested for theft. Consumer segment has 1.1M of revenue and 1.7M cost of goods sold? 100k of marketing a month? So they were basically stealing about 0.5M a month from operations, because a trading business doesn't buy higher than they sell goods for, so they are overcharging themselves and sifting off cash. And a YouTube channel of their scale doesn't cost 100k a month to run.

And that's just the consumer business ("discontinued operations"). The ongoing operations are trying to make you believe that a $15'000 drone costs $12'000 to make (comparable systems are sold at BestBuy for less than $1000).

Despite all of that, they're also paying out stock based compensations to the tune of $3M a year. It's just laughable. Can't wait for the next pump to short this piece of trash on the way down again. $0.8 is still a $0.9 premium