A few years back I invested heavily into a Paul Van Eeden endorsed and funded ( Cranberry Capital ) equity that had a great story and superior technology. ( Synodon SYD.CA) this SRO investment has the same smell as Synodon and Synodon ended up crashing and burning into bankruptcy. Synodon relied on the retail investor for its funding before having any proven revenue generated. They were behind the eight ball from the beginning ( Huge overhead, payroll and debt ) and the retail capital raises were not enough to sustain them while they scrambled to acquire the customer base they needed in order just to break even. SRO seems to be riding on that same track. These small startups should be going SMALL until they can operate in the green and prove their business can work. As growth occurs you increase overhead to handle the growth. SRO like Synodon seems to have way too much overhead and expenses for their small cash flow. This cannot be sustained and looks to me like they are fast tracking into bankruptcy. I am not saying this will be the case with SRO I am only saying that the route they are going has been driven down by many before them and the finish line has been bankruptcy.
SRO Price at posting:
0.6¢ Sentiment: None Disclosure: Not Held
