maybe have a look at the life cycle of a company... we are...

maybe have a look at the life cycle of a company... we are barely passed the idea stage.... and just heading into the young growth stage (where costs are high, no profit, and revenue small), the idea is that with good management and a good product the team can take us through the growth stage, where we get high growth in revenue and financial ratios start looking alright, with sales up and COGS as a % of this falling. In the medium term, during this growth phase we dont want profit we want debt that is at a comfortably high (serviceable) level to fuel the growth. What is important now is that they have expanded capacity which will potentially lead to much expanded revenue if they can deliver on points of sale for the products. These things dont take 2-3 months, but years. A 100m market cap company with 40k of sales is going to be a volatile ride, and youd be dumb to think otherwise - or to think they are going to report 60m of revenue next quarter.