Well has negative operating earnings. Gross profit has little translation to long term success. This company is issuing stock and making acquisitions everywhere and spending every cent they have left over on marketing. Marketing and sales (SG&A) expense is a fundamental core operating cost - there is no evidence this company could survive without it. They have nothing to reinvest with negative operating earnings. They are investing new capital.
From what I can tell they only had $50M in book value and just did offerings worth $93M in shares - that should put in perspective that they are relying on share issues to grow. This story has multiple ways to go off the rails, especially when acquisitions start being written down, although by then it will be too late. They will need to grow and buy companies and they will pay any price and have the cash to do so. This company's press releases and financial statements have a good chance of being used as future case studies for finding warning signs, it is just one red flag after another. Unfortunately, with a high stock price and supportive investors, they can continue the party for quite some time.
Of course I would have been wrong at $1 let alone $8, so maybe you should ignore me. But there is a lot of reckoning here to come. This is not Amazon.
From what I can tell they only had $50M in book value and just did offerings worth $93M in shares - that should put in perspective that they are relying on share issues to grow. This story has multiple ways to go off the rails, especially when acquisitions start being written down, although by then it will be too late. They will need to grow and buy companies and they will pay any price and have the cash to do so. This company's press releases and financial statements have a good chance of being used as future case studies for finding warning signs, it is just one red flag after another. Unfortunately, with a high stock price and supportive investors, they can continue the party for quite some time.
Of course I would have been wrong at $1 let alone $8, so maybe you should ignore me. But there is a lot of reckoning here to come. This is not Amazon.