New here, but they are bleeding $4M minimum annually, have declined 33% in year on year sales, are down to $1.2M annualized sales, and have minimum royalty obligations of $200K 2013 and $400K 2014 for their main product. HOW DO THEY STAY AFLOAT? I am still unclear whether they are a "contract manufacturer" or if they are self-marketing? If they are trying to market, it will bleed them dry, and to death. I am looking for a reasonable explanation for how they can survive. I don't think the company offered this up, but this situation is looking pretty darn dire. I would like to invest, but the odds are stacked the other way. Declining stock price seems to bear that out. I'd like to hear a reasonable opinion on the positive side. Thanks.
They just relocated corporate offices to the PA facility. I was thinking they needed a little more time to get the ball rolling. They have a team put together that made me buy. If somone jumps ship, I'm out. But until then I'm long. I'm working on getting someone to look at the production plant in PA.
Yes, team looks good, but they have very little time, and they are in a very tough competitive spot. They need to sub-contract a new line pretty quickly to sustain themselves. Unless that Plant in PA is actively producing revenue, they are out of luck.