finch, I see it this way: QTG had two parts, both achieving $25m...

finch, I see it this way: QTG had two parts, both achieving $25m revenue. The company had a share price prior to the takeover of 1.9c. On sale of one part, the company now has a share price of .009, or about half of the pre-takeover price, so it seems about right- given the circumstances.

As to the circumstances, this company has shown that, even with one part left, they are unable to sort out having $25m revenue without being in debt. So, they are getting themselves back into debt. They have said that the security systems- a la the whole company- may be on the block OR they might acquire something. So we know they have no money to acquire anything, which means more debt, presumably. If they keep this up, they will be back in $13m debt as they were before the recent asset sale.

So, it depends on what the money lenders want. Certainly, they get benefit from QTG staying in debt, so they may want the company to buy something else.

I watch QTG, and I wondered about the recent fall in share price, but I just don't understand this model of debt they are hooked on. Having said that, I reckon if it falls to .008, it may get taken out. I just cannot believe they cannot make a profit on $25m revenue. They are cost-cutting now, and acting as if they are on the edge. Shouldn't be that way.

I reckon someone has an interest in the share price falling- just periodically, but falling. There's value here. I just hope she gets taken over, rather than buy some new business that they may not be able to manage. And why on earth don't they just raise capital, like other companies do, instead of relying on debt? The company would be so attractive then- no debt, no MORE debt (scrap that debt model), and some room for working capital.