You do realize their quarterly cash income has gone from $270k to $170k, right? A drop of $100k in a quarter.
And to generate that kind of income, they are spending $6M per quarter (yes, that is $6M per quarter). That means the income generated represent less than 5% of the total expenditure per quarter.
That does not include the recent $5M purchase.
On top of that, you should consider the reputational damage to this company: if you are a potential customer, would you sign on, knowing this company has legal compliance issues with their regulatory authority and could go broke as a result or go with another supplier?
Of course, you would take the safe bet and go with another.
AIMHO
GSW Price at posting:
22.0¢ Sentiment: Sell Disclosure: Not Held
