Replies to post #9554 on Stealth Technologies Inc. (fka STTH)

[abcddavis]

Yes, I did miss it. Scottrade still has a link to the original filing that didn't include the financials. Thanks for correcting me on that.

I've reviewed the amended 10-K, and I definitely feel a lot better now. However, the gain on change in fair market value of derivative liabilities was a significant factor in the favorable performance for FY16, $489K. That won't repeat in future periods. They also had a significant gain on forgiveness of debt, $188K, which isn't likely to repeat either. In reality, they had a significant operating loss for the year, but made it up with these one-time other income items.

So, looking forward, I'm not really confident that they have a handle on operating performance. Hopefully the operating loss for 2016 is just growing pains. If the growth continues at the 2016 rate, some of that should fall to the bottom line, and we might be OK.

Anyway, even though I'm hoping for the stock price to increase, I'm still not convinced that it is currently under valued.