These guys seemed to be on a road at least to get out of their...

These guys seemed to be on a road at least to get out of their precarious financial position before the virus hit. It definitely hit at the exact wrong time, and being stuck with Alto as your shipmate for the journey is a real bad circumstance.

There has got to be a major change in the circumstances of this company, either financing or revenue for them to turn the ship around. While I do feel sympathy it isn’t an option when investing to feel sympathetic for tough circumstances, either you get the result or you don’t. So far revenue is basically flat for the past three months and that worries me deeply.

I don’t doubt that they can survive, technically speaking. The question is will the stock be about worth as much as the former Zimbabwe dollar by the time they have issued another however many shares to keep the ship afloat. In my mind there is a real death spiral problem occurring where they need to keep issuing shares to pay creditors but each share issuance drives the price down once Alto sells it, thus requiring even more shares to get the same result.

Dilution death spiral + low revenue due to COVID = bad news for the immediate future.

I will stick around for a while longer just to see what happens but short of some news that provides a solution to at least one of these problems, it doesn’t look good at all. I think they absolutely have to find a way of making money *during* the pandemic rather than waiting for it all to blow over as that doesn’t seem to be happening any time soon.