Hi Trader, I agree with you 100%. It's my sentiments exactly.
I've thoroughly read the Q1 and I'm preparing to do so again with a fine tooth comb. I have an accounting degree and I'm still trying to piece everything together. Not so much on where the company is headed, but how this will be viewed by the market tomorrow. I believe favorable.
The 5m loss will scare people away. However, it's not loss from operations, but primarily due to financing (part of the derivative liabilities), There is a major difference between the two when evaluating loss. I just don't know if the average investor will look any further than the Net Loss?
There are some very encouraging signs beyond the sales increase that stand out to me. The current assets of 4.5m in relation to the 5m loss, the reduction in operating loss, 3.5m sales to 1.1m operating loss versus 2010, 1.2m sales to 2.2 operating loss. This to me signals a significant turnaround.
Overall, I have faith in the company's long and near term prospects, and believe I've made a good investment.
Coach - I do not have a degree in accounting, but it looks like the company is using stock to pay their bills rather than cash. So how is the loss due to financing? Everything is co-packed so their is no investment in inventory. If they pay an athlete stock to show up at a GNC rather than cash, how is that "financing"?
Coach, thanks for your input, we are on the same page. The stock price will follow as they always do. The company just needs to continue the growth and we will make a ton of money. Pending price action tomorrow, I will add to my long position