i looked up the financials of that acquisition they just made , seems like they were losing quite a bit of money on a regular basis. maybe its down because investors are seeing increased liabilities to fund the operations , and a greater strain on earnings going forward.
i say double down from here too. near book value, i look at book value as cash, accounts receivables minus liabilities. The only way i see this thing going up this yr is if they do some large deals. Also, them giving 1.5mil in stock to top employees and others hundreds of thousands it could mean in the future they will let earnings fall to the bottom line so these people can sell.
i do not really have a time frame. i am just sick and tired of buying stocks just to see their value keep going down. i have not been lucky doing this stuff. i can wait it out but just wonder if this stock is dying a slow death, or is there any likelyhood of them boosting this back up over the next several years. if i didn't have bad luck i wouldn't have any luck at all. i had good stocks a year ago and sold those to buy losers. my own fault, not blaming anyone but myself. good luck here guys.
hey hopeful, I havent listened to the cc...I'd like to know if they addressed their China reverse merger situation.
Also, if they are still holding warrants related to the China RM's they assisted, they probably have another qtr of warrant losses ahead.
Anyway, here's what I said a month ago on this board about RODM, and I guess it still holds:
"I think their are two reasons why RODM is being sold at these low levels.
First of all, while as you state, RODM is not a Chinese company, one of its main businesses has been taking china small caps public through the reverse merger route...and then covering them. Many of these companies have been found to have funky business/accounting practices, and some have been delisted to the pinks, while others are in the midst of trading halts. RODM assisted some in going public, and initiated coverage on some. Even the ones that may not be fraudalent have seen their share price decimated. The SEC has stated that they are beginning to investigate the China stocks that have gone public via the reverse merger route.
The above may not have any direct consequence on RODM, although they probably own some stock in the ones they took public. However, its possible that RODM may eventually be involved in lawsuits by shareholders...whether they are culpable or not, I cant say.
Also, the portion of RODM's biz related to taking China companies public, covering them, and managing follow on offerings (or other offerings) should be in sharp decline going forward as the sector has been put under the microscope.
RODM's definitely a tremendous value without the above mentioned crap....and it may be a good one even with it. But thas why its being sold."
Fab, Thanks. You certainly make the case for the struggling price. Holding RODM, for me, rather goes against my actions to avoid Chinese companies, for sure. I also believe there is value here too. I guess maybe it's simply too hard to measure that value closely under the circumstances, though, and there are participants more than willing to profit off of that uncertainty relative to the difficulty of measuring what's real and what's not. Hopeful