alwayssmile:
There is a happy medium between the past, the present and the future of microcaps stocks.
Sure, most start out completely horrible, diluting shares to raise funds time and time again while searching for a viable business model.
At some point in time the companies either discover that model or they fade away.
The past performance is definitely something that has to be looked at and compared to the rpesent condition of the company. Press releases touting future gains can be good but one must determine how long it will be before such progress will be reflected on the bottom line and how the company will survive until that day comes.
Many people will tell prospective investors to ignore the past and follow the future. That is irresponsible behavior as alot can be said about the company by seeing where they were and where they are today. Comparing the financial statements for ERUC shows that the losses are still an equal percentage of revenues which means the gap between loss and profit has not changed significantly.
What does that mean? It means the company is not real close to being break even or turning a small profit. What does that mean today? Looking back at the last financial filing and comparing cash on hand to quarterly losses will tell you they will be having days like today in order to raise funds to pay the basic operating costs of this company so it can stay in business.
Now, if the day comes down teh road where losses are shrinking and they are nearing a level of profit it would make more sense to consider an investment.
Obviously that is how I look at this situation. Some people look at it entirely differently and they would say to buy in now and get in on what they call the "ground floor". But, if you look at the performance of this stock it would appear as if the ground floor didn't take into consideration the basement or the underground parking garage where most of the "ground floor" investors now find themselves.
Sometimes being in on the ground floor only puts you at the bottom of the implosion pile of rubble.
News 
Market Data 
Discover 
AI
