SOYO Group Inc (SOYO)

[ancalagon]

I've watched Level 2 for a couple months looking for a good entry point. I almost pulled the trigger several times, but I was waiting for the quarterly report. I think why we're going down - or who knows being shorted if you will - comes from the Q...

"In September 2007, the Company announced to shareholders that it was negotiating
with several independent third parties to raise capital. The capital would be
used to improve the balance sheet and increase the Company's borrowing
capabilities. The Company further stated that with the large increases in sales
during the year, all of the Company's credit had been utilized, and that the
Company was having difficulties purchasing enough products to maintain the 2007
level of sales growth. As of the date of this report, the Company had not yet
agreed with any outside party on any capital transaction."

The part about "having difficulties purchasing enough products to maintain the 2007 level of sales growth" scared me a little. Obviously we need money to keep our current sales trend and we need money I'm assuming to market the Honeywell agreement.

Any thoughts? I like the stock...it's sometimes hard with these thinly traded BB's to find a good entry point.