Two observations. One its not an end of the world, they can always buy back shares later to reduce dilution. Second, they have positive EBITDA of five million adjusted for one time gain of $2.5 million, it's a $2.5 million real EBITDA. Improving at $2 million a quarter, they will be $8 million EBITDA by third qtr next year, this will allow them to borrow their debt, current interest exp is $10 million, s only deficit of $2 million by then, which is not unmanageable. Thought it was pretty good qtr.
Having followed this company from start to many quarters now, it is obvious that big guys are trying to scare retail and then get in. Company has earnings, and as is case with many internet technology companies, profitable ones keep growing and taking market share away. I like to know which rising competition is taking their market share? Eat24 is $10 million in sales vs. GRUB $90 million. Look at their forecast for 2016, much higher. Their profit and EPS are also much higher. Estimated .85 EPS and price of $30 is PE of 40 not 70. Their last conf. call, they indicated, they will deliver to about $175 million of their revenue markets, in their top 30 markets. Once they start this ball rolling, delivery only restaurants will be another category they will start. They have good long term potential and it will be clear on next qtr earnings,