Your opinions? Is this just still feeling the after shock of that conference call? Downgrades? Or are they walking it down to $2.50 to $3 for a Dilute? Isn't it way to early for that? They got way to much cash to Dillute now. Wouldn't they run up the price of the stock before they Dillute? Doesn't make sense to now. Market factors driving this down? Or Dilute? Your opinions.
Hey Mattyboom74, I don't think ROSG will dilute anytime soon. This is just a delayed reaction from the poor earnings and the recent downgrades. I really don't think there is much downside from here since we are trading near cash value.
I have to disagree, I think it has lots of room to fail. Ill get back in under $2 maybe even less. Just give it a month or two.
Their cash value and cash on hand really means nothing because they are burning cash at such a high rate of over $2 million dollars per month, with no real end in site unless suddenly sales go through the roof. In theQ4 2012 earnings, they said they had enough cash on hand for 24 months of operations. The clock is ticking...so take 5 months off that...they now have 19 mo operating cash. I know they just did the $5million offering, but thats nothing....two and a half months of operating costs at best. They will need more. If cash on hand dips below 24 months, things start to look grim for the company and they will have to go into fire sale mode trying to desparately find a buyer who can finish the deal before they run out of money in early 2015.
Aside from the dilutions, the other problem is the lack of shareholder trust. Berlin has #$%$ off ALOT of investors in the biotech area. They just kept stabbing people with dilutions last year. Q4 2012 earnings were out for a half hour before they announced the $5 Mill dillution. Couldnt even give us a full day of being in the green before diluting. ANY company that does that to its shareholders is just plain sick.
Another problem is that they do the minimal reporting SEC requires for a foreign company (2x per year, instead of quarterly). They have almost no transparency to shareholders. Annie Marie is one of the biggest investor relations bags in the industry. You wont see any more earnings until September or October for this pig because they only report 2x per year, so its a long time to wait for news of earnings or sales.