Analysis of SAS, page-32

I think, the move to global makes absolutely no sense whatsoever. Imagine you need a a car to make money and you are cash strapped. Logic says that you would buy whatever car with however much money you have, get some money flowing first and then upgrade if you want. In the case of SAS, using the same car analogy, they do not have enough money for a car and yet they decide to go for a Ferrari instead. Nothing about that makes sense...nothing...what makes even less sense is that some people actually think that it does...positive even. That is just downright scary how people, supposedly normal people could even conceive that.

A. I expect that no one is going to be crazy enough to lend the company any significant amount of money. How much personal financial asset has management invested in their own company? My guess is none and I don't even think that they are going to participate in the CR now. Michael Malone for example was going to invest 400k? Management 300k?

B. Well I think you heard wrong. I don't think they are going to have enough to even build the 8 pearls considering that none has been made so far. That is even if the new agreement with gommspace entails for downgraded design of the nanos from 8U to 6U. Basic mathematics would tell you that. Reducing the batch numbers would increase the number of launch needed dramatically and thus SAS would need a hell of a lot more money....

C. Nope, because like I said I don't think that anyone is going to be crazy enough to lend SAS any significant amount of money. Toy knowledge, even Taylor and Chieftain decided to pull out of the underwriting arrangement. Would you lend SAS money? If you believe in the company so much then you would right? No? Why not? Right...so then why expect a bank, who I think would be much more capable than you at making financial decisions, to do the same?

Imagine you creating your own small business here in Australia, would you need to invest your own money or take out loans to provide necessary capital? Yes. Sometimes business owners work long hours for no pay whatsoever for a long time. If you go bankrupt then you lose everything. Is it the same in the case of SAS? If the company goes bankrupt tommorow what would management have lost? I would say absolutely nothing...