News Focus
News Focus
icon url

Dmac9

01/01/14 1:55 PM

#11847 RE: gimmeabrk #11846

Debt is a necessity for any biz. Especailly at this stage.

They didnt have debt for so long until they absolutely needed it so like trade's quote, they did avoid it as long as they could.

But the choice seems to be debt to get to profit or no debt and dont grow.

I vote debt.
icon url

TradeasaurusRex

01/01/14 2:25 PM

#11851 RE: gimmeabrk #11846

That's the golden question.
I think Benny is hoping to out earn the stupidity of these loans. Meaning he is in a race against time to get the advertising needed to pay off those loans before those companies can take the stock and decimate the pps. If he can not, then this whole company will go under, the pps will collapse, and all will have to move on. These loans were necessary yet ugly. No doubt about that. He needed the capital to get the initial products out with the limited advertising money (assuming) and to show potential advertisers this is the real deal. These are set to start in July. I think that will happen based on these loans. The PPS should spike then. If this is going to work and advertising comes in, they can out earn the stupidity of those loans shortly after. The pps will skyrocket to past glory. If advertising does not come in, the money from the loans will run out, the loans will come due, and that debt will be a unsusstainable situation that can not be overcome. We all know what happens then. Benny bet the house to get this initial product out. I think July happens. I think the cards are called come Oct-Dec. If those happen, Benny and all holding won the pot. I just don't see them being able to hang on very long after July if the initial few months don't turn profitable quickly. That's the gamble we are all in, like it or not, with Benny.