wadi, it is your bad expectations that cause your disappointment........
The company is experiencing amazing growth. In order to get this growth, you need working capital. This working capital is obtained by selling shares. NOT sure why some people here think RME was going to give us a bunch of interest free loans.
Once enough cash has been raised and the company becomes self sufficient from a working capital perspective, they stop selling shares. In pennyland, 99% of companies never become self-sufficient becomes their product either never makes it to market, or they run out of ability to raise capital and go bust. In our case, the product is good and has already made it to market.
The way I see it, using a full AS to calculate a valuation is the correct approach. In our case 1.25B shares is the correct number to use. Using $7M is net income expected this year and a simple conservative multiple of 10, you get a PPS estimate of almost $0.06. Thus IMO, the PPS is way undervalued right now.
Unless they have a massive growth surge, or something really bad happens to the business (i.e. A/R write-off), they will not need to issue any more shares IMO. Until the AS is adjusted, I will continue to use this 1.25B in my calculations.
The rest of the BS you read on these boards is just that, BS. Nothing but rumors (some started and stretched by management) to create as much demand for the stock as possible. A dumping cycle is usually characterized by a lot of fog and lack of clarity. This often is required because too much transparency will allow NSS to take advantage by shorting prior to dilution and covering during dilution.
The good news is, that I believe we are at the end of the cash raising cycle. IMO, now is the best time to load the boat with as many shares as possible, and ride the waves up as the company continues to grow.
Some here need to revisit their DD and stop reading every post on every message board posted by uneducated inexperienced people that have very little clue what they are talking about.
AI
