CarbonMeta Technologies Inc (COWI)

[PaperProphet]

I'm sure Innova can tell what areas are making money and allocate resources appropriately.

They're doing alright in growth of services, going from revenues of $256k to $436k to $610k in the past three quarters. The last quarter's acquisition of Altronics only contributed $20k to revenues so most of the growth seemed internal. The service revenues and accompanying gross margin are still dwarfed by the SG&A (about $757k last Q) but they're growing nicely. Maybe having the litigation out of the way will allow them to focus better and/or cut some additional costs--going through that does take resources beyond just legal fees.

Innova could probably get out of the mess they're in but they need to execute well. Getting some license revenues would certainly help. Their service gross margins are a bit low compared to what I usually see so maybe there's room for increasing their rates.

I'm not sure what to think overall. Many here don't seem to have a good opinion of management but I'm not sure how much of that is due to management's actions and how much is due to the stock getting hammered for about a year. If the falling price breaks, the Cornell financing will have less influence on the share price so getting some licensing deals or otherwise improving the bottom line should really make a difference. On the other hand, if management really is bad, there's probably not a lot of hope.