Dalrada Financial Corp (DFCO)

[mike306oh]

***Cleaver move on the part of Mgmt. Rather than relying on death spiral fnancing schemes (such as ofered by Cornell) to cover their debt, they issued covertible notes and warrants instead, that the investors only have the right to convert in two, and seven years respectvely, and this only in case the Company defaults on paying the interest payements.

The Price/Sales right now it's only 0.15! If the company continues to increase revenues, and net revenues, they should not have any problem paying it (the interest). Last Q they had a $3.3M net revenue, or 0.0043/share (calculated using the 771MM OS from the last 10-Q). The Y over Y, and Q over Q revenue/net revenue is following an explosive growth, so the Company appears to have a good business plan, and products that sell. Being debt free should help the company reistablish good credit, and accelerate the growth even further.

Usually, for an explosive growth company such this one, the PPS should be at least 20 times the EPS, or at least 0.085. This is in agreement with the average P/S ratio rule of 1.5 to 2. Based on this, from a ratio of only 0.15 at the present time, the PPS should go up by a factor of 10 to 15 times, or from 0.065 to 0.0975.

In my opinion, this stock should start moving at any time. The real move, that is.

Mike

Mike