Historically, I've been a big fan and proponant of DRGZ. I've made and lost money on the stock.
As I see it... the pros and cons are these:
PROS....
1. Pretty exciting industry. Infomercial companies can succeed and prosper.
2. Medico Express is a new and potentially profitable direction with recurring revenue. But we need cash to make the engine run.
3. Since restructuring business model has been turning modest profit.
4. Supposedly, Spin-fryer product, consumer and commercial versionS, have some great potential....let alone the Riddex Plus and Proceed.
CONS...
1. Undocumented increase in outstanding shares.... was 1.1 million... to 5.4 million... to 12.8 million at date of last 10Q. If I'm not mistaken Mirador ended their relationship with the company because these shares were issued without 8-K notice. ON that huge volume period when share prices went up to $1.25...lost of shares were being sold.
2. Press release issued with last 10Q was that they were having trouble with creditors. They have debt owed... mostly for infomercials...I think I read Media Com or something like that...and they were not able to come to agreement.
3. Price per share has plummeted since that release. In my estimation...MediaCom or whoever would have to realize that DRGZ is worth more alive than dead. If company survives they have hope of repayment...if the go into bankruptcy they will get nothing.
As bell345 has been faithful to point out the company's balance sheet is not healthy... Would financing help? Certainly...but until we hear something... I think DRG is pretty well between a proverbial rock and a hard place.
Supposedly, the company was close to lining up financing but so far has not closed the deal. If it comes together...I think it will come with additional board members and perhaps even management changes. We shall see.
