STTCOMP SCU FA Long
Market Cap: $14.6 mil
Cash On Hand: $5 mil
SOI: 1.04bil
SP: 1.4c ($3.8mil CR in late Apr at 1.9c)
Re-entering my expired tip. Basic information about the company in my last tip 54416450
Updated pros and cons based on the events since the last tip. Disclosure: I am still holding all of my original parcels and added even further recently at 1.5c
Pros:
- Still good cash position, for a $15mil mc market cap
- Apparently some hemp deals are to be finalised as soon as the COVID restrictions in China are lifted
- Wilsons have bought more shares recently and now on the verge of 5% / becoming a sub share holder, possibly they won't cross that line
- I still believe that the last CR in Apr was for some deals/acquisitions which fell through/delayed because of COVID flare ups, and we might see some updates very soon
- I like the carbon credits angle associated with the grapes sector (which is co-incidentally the highest revenue generator already). Carbon credit prices are on fire recently and many companies in this space, whether creating/selling or managing credits, are expected to make a fortune.
Cons:
- Pathetic communication with shareholders still the main issue
- Big revenue drop in last quarter, quoting COVID/seasonality issues with sea grapes business. Still excellent YOY improvement in revenue
- Spending an awful time preparing audited accounts, keeping aside everything else...usually a red flag
Despite the negatives, risk vs. reward is compelling for me at this price point.
