Update contained some bad news. They are cutting back on their bitcoin mining because bitcoin mining has gotten a lot more difficult. They did make it sound like they were reducing bitcoin mining to expand ether mining but since their facility is not near at capacity they shouldn't have needed to cut back on bitcoin mining to expand ether mining. They stated that currently ether mining has better economics than bitcoin mining but I didn't see any mention of expecting to make money from ether mining. Remember not too long ago they projected making a lot of money from bitcoin mining.
I don't know anything about the companies that they invested in but I don't think they were big investments and I don't see any value listed on their balance sheet. No question somebody thinks there is value here since there has been buying at higher prices since bad news was announced. I think people believe in the future of bitcoin or blockchain tech and aren't paying attention to company financials. Remember how people thought BTCS's e-commerce business would be great and don't forget about wonderful Spondoolies.
I believe they will have trouble getting enough money to expand. They have total assets of under $600,000 and current liabilities of $5.4 million. Not a good investing opportunity.
Will the new company have any debt? If so you will need to subtract that from your estimated value.
They have a plan. Acquire new financing to continue operating and expand their NC mining facility. The news will be whether they get new financing or they go BK.
They need to prove that the new TA can make money. I liked buying the old TA at $8.50 but now I have no idea what is a good price for the new TA. If they can't improve from their early new TA results then even current prices are too high.
They are close to BK with a negative $5 million book value and yet their market value is $18 million. BTCS has no chance of continuing to exist without somebody giving them additional money. With this difference between book value and market value, the odds are slim that anybody gives them enough money to turn the company into a profitable business.
The good news is that it wasn't a bankruptcy filing and they are still operating. The bad news is that without new funding they won't be operating much longer. End of March they had $63,000 cash. They burnt through $354,000 cash during the Jan.-Mar. period. Clearly they need additional funds very soon but why would anybody invest in BTCS now that after their Spondoolies loss their book value is almost a negative $5 million. Any investor interested in BTCS's operation could wait and get a better deal once they are in bankruptcy.
I agree that it would be nice if the CS numbers were broken out. Based on their losses while having decent fuel margins, I believe they are having significant losses from their CS business. The old TA proved they could make a profit when they were just a truck stop business. Now the new TA needs to prove they can make a profit while both a truck stop business and a C-Store business.
I had been negative on WYY because their losses had continued to grow. Now they announce their first earnings report with numbers that indicates a turnaround might happen and the stock price goes down. Surely this quarter exceeded everybody's expectations. Maybe some shareholders got tired of waiting for WYY to be successful. I don't know. Anybody have any ideas on why the stock price is dropping?
Now that BTC's $2.25 million investment in Spondoolies has little value their book value will go to a big negative. That should make it even more difficult to get the funding that BTC needs.
The Flying J company is out of business. Pilot acquired Flying J out of BK and then continued to use their name. Pilot was the company that got caught cheating their customers.
The company went out of business. They were bought by Pilot which continues to use the Flying J name. Once Pilot took over their locations they quite selling retail gas at the lowest prices.
Pilot was the company that got caught ripping off their customers. They returned less than agreed up rebates to their customers that didn't keep up with how much they should have received. For a while this actually hurt TA because Pilot reduced their prices to help keep their customers.
Pilot acquired them out of bankruptcy. Not sure about their diesel prices to trucking firms but their retail gas prices were the lowest. I am not positive but I think TA's fuel margins went up once Flying J went out of business.
Don't feel comfortable about their book value. Over the last few years they have driven their book value way down. I don't remember their past numbers but they have sold many shares at way below book value. They now have over 3 times as many shares outstanding as they had before they started expanding. I think you should value TA based on expected earnings x a low PE. The low PE is to allow for the mistrust of their relationship with their landlord. The opportunity here use to be that their earnings would change a lot based on changes in fuel margins. Buy when stock prices were low due to low earnings from abnormally low fuel margins and sell when stock prices were high due to high earnings from abnormally high fuel margins. Now who knows since their recent expansions are impacting their earnings. In the last 2 quarters their fuel margins were not abnormally high like last year but they were good enough that they shouldn't of lost money. For me the question is will their expansions continue to hurt their earnings or is it just temporary.
probably wasn't and order for 6 shares but a partial fill. Say somebody puts in a market buy order for 1000 shares. it might take more than one asking order transaction to totally fill the market buy order with the last transaction only needing 6 shares to reach the 1000 or a asking order only having 6 shares left after a previous sell. The buyer will only pay one commission for that order even if it takes more than one transaction to fill the order. The seller will have to pay one commission for that day on the ask order even if only 6 shares was sold. Partial sells or buys is the risk you take when you put in ask or bid orders unless you specify all or none.
Why acquire a company that is a huge cash burner. The merger advantage was to be able to get more efficient mining machines but now the competition is announcing they will have better machines for sell. If BTCS can get additional funding they would be better off to just buy new and better machines from Spondoolies competition.
If things pan out, I will be willing to pay more than $7.50. I am happy that I sold out for more than double $7.50 and didn't assume that their expansions would make them worth more. Their stock price would probably be well over $30 if they had just stayed with their truck stop business and only 12 million shares outstanding.
Maybe I will eventually buy some shares.