Replies to post #90091 on Savvy Trades and Investments

[hweb2]

Yep great numbers on IMMR as preannounced. Agree on the CC. With delta and supply chain constraints, it makes sense they would be a little cautious. I'm guessing Q3 will be another solidly profitable quarter, just probably not sequential increases after such a strong Q2.

But what I really don't get with these guys is why are they continuing to sell shares to build a monster cash horde?!? I mean when the stock had that crazy run to the $16's earlier this year, sure raise a few bucks. But their cash position is over $107M now. They've been nicely profitable for the last 4 quarters and said they'll continue to generate cash each quarter. And they've sold more shares in the past few weeks to add another $14.5M in cash? What the heck is all this cash for?? They're certainly not making any money off it (look at the pitiful amount of interest income last quarter). On the CC it didn't sound like they were close to an acquisition. And even if they do want to make an acquisition, don't they understand they can issue shares at that time! None of it makes any sense to me. If anything, they should be buying shares back in the $7's. Not diluting themselves on the cheap, for no apparent reason.

There was one juicy nugget on the CC. They've signed a deal with Peloton during Q2. Hello! Where was that PR? If these guys want to raise money...don't they understand if they put out a PR announcing they're licensing their technology to Peloton, IMMR would probably double in a day on 10M+ in volume. They could sell all the shares they want. At a big premium. This management team doesn't seem too bright.

From the CC-

"We also see interest in haptics from companies in adjacent markets who are seeking to leverage technical feedback to improve the user experience in their products. I'm pleased to share that Peloton, a leading interactive fitness platform provider, executed a technology license with Immersion in Q2. As part of the agreement, we are also providing engineering services to support development of new products."