Investors appear to have lost faith in the company’s ability to...

Investors appear to have lost faith in the company’s ability to turn its high cash expenditure into profits, and the most recent quarterly report only accelerated the company’s fall. It’s not hard to see why, given that receipts from customers were just $94,000 while the company spent $5 million on operating expenses.

Investors should also know that buying a company with heavy cash outflows and minuscule revenues is not the key to good returns.