LOL! The company earns virtually zero percent on its purported $91m cash. Is it real?!
Hmm...this cash does not seem real....lets see for the first three months of this year:
Cash & equivalents = $91,320,803
Interest income = $71,579 (for three months)
Very approx. annualized interest income = 0.31%
Total Debt (including related party loan) = $12,502,289
Interest expense = $277,023 (for three months)
Very approx annualized interest charge = 8.86%
So $91m of cash in the bank only earning 0.31% interest huh? This is not ready cash hidden under the table for office expenses or in an on demand deposit. If that amount of cash was real then they would be earning far more interest income than that. Sloppy financial management or fake cash? You go figure...
Let me just repeat that in words: NINETY ONE MILLION DOLLARS EARNING ONLY ZERO POINT 3 PERCENT INTEREST!
Oh...uh....and also with all that cash, why did they need to INCREASE debt in the first 3 months of this year? I know what-if the company spends this "cash" on a massively over priced project then it does not have to worry about investors questioning whether the cash is fake, because it disappears. You been had guys.
If you are so convinced that this company is a scam, I would sell all the out of the money call options you can afford to cover. When the company comes tumbling down, you will make a fortune.
However, if you are just bashing because you are attempting to manipulate the shares downward (which is a violation of Securities law, and the SEC is cracking down on these bashers) then I would advise you to #$%$. You could end up with a substantial fine and jail time.
If you had a substantial amount of cash on hand, maybe $30 Million, and if the two brothers didn't own more than 50% of the shares, you could STEAL the company A LA Mode Romney. He made hundreds of millions for Bain and himself by buying companies which were selling on the market for WAY below the value of even their CASH on hand less payables. If SPU indeed has 90 Million cash on hand, the company, EXCLUDING plants, equipment, accounts recievable and inventory, is worth about $4.00 per share.Several months ago, Zack's Investment Service rated SPU as having a BOOK VALUE of nearly $7.00 per share. But I'm sure you know better than Zack's what a company is worth.
If you REALLY think you are going to save all us "suckers" from losing our money, I would invite you to start posting under your REAL NAME and your home town, not a "handle." Otherwise, it might be best to shut your pie hole, or lying data entry person in this case..
Boston rocks.... the going interest rate for commercial accounts on deposit is close to ZERO %...... you need to expand your intellectual horizon .......the rate of 3 and 6 month Treasuries is at close to ZERO as you can get.
Exactly, I've done really well in the stock market the last 4 years and have about 25% of my IRA in cash. It's making a whopping 0.25%. If you want to tie up your money in a 5 year or 10 year CD, etc. You might get 1%, but who really believes that interest will be as cheap in 3 or 4 years as it is today. Mortgage rates are going up and I'm going to try and refinance in the next couple of weeks. It will save me something in the order of $40,.000 on a 15 yr mortgage, and cut my payment by about $400 per month. A lot of that money loaned was out of the pockets of the two brothers who own 80% of the related company. I think if you check your figures, the interest rate being paid out is around 6%. If you have a product which is selling at a gross profit margin of over 60%, why worry about paying 6% interest on a loan? I've been unable to follow the market for about 3 months due to my wife's illness, but I was very pleasantly surprised to see the first quarter financials just now.
This same "basher" type of short seller innuendo was put out by Absaroka capital about 2 years ago, and they ended up in court, and admitted that their "intelligence" regarding the legitimacy of the company, their assets and sales was more than flawed. Absaroka took out a huge short position, then sent out their "newsletter" which caused SPU shares to drop by more than 50%. The chairman of SPU then opened up the bank account for the public to inspect. SPU did in fact have more than 60 million cash on hand and proved it. They hired a more well known and more respected auditing firm to releave any doubts about the company's integrity.
I just checked out the options market a few minutes ago, because I was convinced that after reading the financial and sales reports, this would be a great time to write a "put" option, but there is just nothing available. I made a really nice profit 6 months ago selling a put. CASH on hand less liabilities makes SPU worth at least $4.00, book around $7.00.
Amazin999, no you are wrong, and I suggest that you get a brain and also learn to read.
As I already pointed out but which you failed to understand, $91m is NOT simply held on deposit in the bank at close to ZERO %. A petty cash on demand deposit for everyday working capital and expenses gets close to zero percent, but NOT a whopping $91m cash pile.
Chinese bonds, including government bonds at 2yr and 10yr, trade between 3% - 3.5%. 1yr time deposits get between 3-3.25%. There are also "structured deposits". And so and so on...
It is astonishing that you think an interest rate of 0.3% on $91m cash is acceptable and explainable. How ridiculous!! I am certainly glad you are not managing my finances.