The CEO is an ex value investor and I honestly think he's just having a crack. Can't remember how he became involved. I don't necessarily think he'll do a bad job of investing the money, but regardless seems a governance issue and not what he should be doing with the money. I still really like the CEO, how he thinks, and you can see the investment lens applied to how he runs the business. Very SMB situation here.
Separately I've got the same question as Skinsy -- where are the contracts going to come from? Seems they've tried for several years now to get another material client, and they're pretty upfront about 1) no big sales and also 2) they don't really know how to get more.
Also, CEO has spoken a ton about intending to invest 100% of profits into growth so any thoughts about future cash flows getting better would require a change of plans first. But even if they did just let the cash roll in, that's not sustainable. One day the GM contract won't be renewed and revenue goes to zero.
So everything hinges on landing more contracts which seems very uncertain.
I was willing to bet on that when this was around $0.10 and before they landed the additional contract with GM, but have since sold out.
CXZ Price at posting:
2.4¢ Sentiment: None Disclosure: Not Held
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