No Insider Buying, Enterprise Value of $70 Million Already Today
Anyone who has been here knows what to expect. Increase on heavy volume to allow new Naked Short positions to be established. Brokerages actually selling into the market non-existent shares of CDTI.
It's safe and easy. In the first quarter, just like all previous quarters in the company's almost 20 year history (they have never made a real GAAP profit), Never! since going public (instead CDTI management has squandered $225 million in shareholder capital) per management's own statements.
No insider buying!
In the first quarter CDTI lost $2.9 million, or somewhere around $30,000 plus every 24 hours of the quarter. That's about $1,200 per hour every hour of the quarter in real operational losses!
CDTI's Secondary At $2.20 Per Share.......
They will have their way with the shareholders.
CDTI now has less than $1 million in cash on the balance sheet according to my calculations, and $12 million in liabilities.
The company has never made a profit, and per CEO Beale's own words at the last cc, the company at best sees "break even" looking out through December of 2018. Not 2017, 2018!!! That's a big if since revenues and sales are declining, and actual real profits continue to be elusive.
The company continues to burn $30,000 in cash per every 24 hours on planet earth. Just do the math, it is all there. Nothing ever changes at CDTI. The company is out of cash again and will not be able to make payroll by the end of June! Or pay the rent on the company's "campus", which costs the company somewhere in the neighborhood of $75,000 per month in rent. It was $70,000 in 2012!
Notice how no numbers were given about Durafit. That's because Durafit sales are most likely declining below the $5 million per year reality. You remember, CDTI totally misunderstood the cost of rolling out a new product, totally over estimated the North American DPF market and possible penetration, and continually projected $10 million in sales, then CFO changed it to $7, and then the reality of less than $5 million, and now the product is declining imo. That's why no numbers were given.
But Mathew has learned a new word................scaleability.
No Insider Buying.............Real Curosity
CDTI now with an enterprise value of $70 million, per management break even through 2018, with a reduction in projected revenues to $5 million per quarter from $10 million, break even with $2 million in expenses every 90 days.
CDTI management dealt Kanis and Bell shares at $.32 or $1.60 post RS, and the rest of management at $2.00, and the public at $2.20. But none of them are stepping up at $3.48 with their own money.
Real curious, no one in management is willing to buy any shares. It must be because they know that they are going to being issuing another dilution and secondary any day now. Question is, at what price. Last one just a couple of months ago was at $2.20.
yep to bad thought awhile back they had disruptive technology only problem all they ever did was disrupt share holders. Reverse splitting is what they are really professional at😩
Who says CDTI isn't poised for potentially massive upward movement? Im not sure about you guys but aw-esomeSTOCKS has provided me with some pretty good trade ideas. I messed up executing some of them but thats on me.
Pacific Coast Business Times Monday May 15th......
Reported: "Drop in year over year revenue and an increase in its net loss to $3.1 million" "The company had $2.4 million in cash on hand March 31st, with $12.7 million in total liabilities"
That was on March 31st, as the company was burning thousands of $$ per hour 24/7. 45 days later, May 15th, with current burn rates the company needs to raise operating cash NOW!
If the $12.7 in total liabilities number is correct then the company is in trouble NOW. If correct the enterprise value is now over $60 million.
Translation: Management needs to do another secondary NOW. Last one was done at $2.20? just months ago, but the cash burn is continuing. Expect the announcement for another fund raising quickly.
CDTI To Raise Capital Via Another Dilution & Secondary
Durafit is worth little to nothing as a brand or image in the market place. The company has already borrowed a $1 million from Haldor....management's own words at the recent secondary, for all of 2018 they are looking at $5 million anticipated quarterly revenue with $2 million in operating profit, and $2 million per quarter in expenses.....thereby hoping to achieve break even.
The problem is this, CDTI already has an enterprise value of more than $60 million today, is hoping to achieve $20 million in annual revenues in 2018 & 2019, but has no cash to continue the operation through let us say September of 2017. The company may very well be out of cash next month or now. More borrowing to prop up the operation, and an enterprise value of 3X of revenues for 2018 & 2019 per management.
What's wrong with this picture? BTW, this is all on the come. During the last almost 20 years, has CDTI ever achieved its projections? No, clearly NO! They have however spent and squandered more than $220 million in investor capital raised with the same type of words of the past.............and of course keeping the game going all these years.
The Going Concern Warning From the Company's Own Auditor Says It All!
there is no reason to believe the company will ever be profitable, since the company has never made a profit, and may not be able to survive as a business entity.
Not my words, the company's own Auditor!
if there is a Durafit deal, -will they get some money up front? I don't think they were losing money on Durafit ? Margins less, but still profitable - if they can reduce their costs while boosting their margins it could help a bit ... I'm still on sidelines ..watching for a clear sign they can turn ship around..
X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks Sep-2016 1,000 Day Parameter 2,830 NASDAQ Stocks Price Analysis This stock mode of correlation coefficient is 0.3 In other words, the correlation coefficient of the other stock
is cdti burying its earnings turd in the back corner of the litter box today? we'll find out. meow.
Breaking things down:
Cash down $5.393M to $2.446M
Biggest 1st qtr drains on cash: Prepaid expenses $246K, shareholder notes paid $1.803M, accrued expenses and liabilities $1.55M, R&D $364K, that all adds up to $3.963M. I have to wonder why CDTI is prepaying more expenses and lowering expenses and liabilities while increasing R&D when they don't have enough cash left to make it through the 2nd qtr.
On the more positive side, accounts receivable were down $427K and inventories $705K. The inventory number doesn't necessarily jibe with their statements that they're costs were higher due to palladium.
They had better get cracking or they are going to run out of cash …. which makes me continue to feel a DuraFit deal is on the near horizon.
See you in two weeks as I will be opening up my camp in the U.P. of Michigan.
•Net loss was $3.1 million, or $0.20 per share, compared to a net loss of $2.8 million, or $0.76 per share in the first quarter of 2016. •Cash at March 31, 2017 was $2.4 million, compared to $7.8 million at December 31, 2016.
running out of cash ....................................
Read Roger's/Tony's Assessment of the Cash Burn if You Do Not Believe........
Roge states, "they do not have enough cash to make it through the second quarter"........
Get ready for another $.75 per share drop in price from $3.22 to $2.50, or, even more costly open market borrowing. Beale or Kearns did not want to say anything at the cc, but it is obvious, just like so many times in the past.
Read the Coast Business Journal article that I referenced, you can pull up the entire article yourself.
$2 plus in cash, with $12 million plus in liabilities. That was through 31 March 2017. Do the math........CDTI is out of money to keep the payroll going without yet another borrowing or stock dilution and issuance.
CDTI To Announce Secondary Offering
I have been through 3, or, 4 of these. The way it works is after the close on Friday, or, before the open on Monday morning you will awake and read the announcement. The last one if I remember correctly was with the stock selling at $3.29, and the issuance of the stock at $2.50. This is not going to be the first time.
CDTI the company, with the cash burn that was announced at the last cc is running on fumes. Any of the cash left is overseas, with just enough to keep the payroll going left here. CDTI is now at or below $1 million in cash to pay the bills with. Read the cc, determine the cash burn, read what was left as of March 31, 2017..............and with the company burning through a minimum of $24,000 a day (it is actually more imo) just to keep the doors open............then factor in April and all of May. Correct, is out of cash.
The rent (monthly) on the company's so-called campus is $75,000 plus per month in Oxnard alone. Just do the math on that one component. Just a fact.
You will awake, and it will be done............not the first time. Dilution to keep the doors open is coming. Unavoidable.
George if you sold as you say you have, then show the trades. Interesting how when this ran up a little, you all of sudden claim you found 13k shares hiding under your blow up doll. You are a delusional old man. Always claiming things after the facts. You were bashing this for the past 6 months, while holding 13K shares and you somehow expected good news? Here's what you do, you go out looking for a new vagrant. Buy him a milkshake, invite him back to your truck and leave the cash in the glovebox. Hopefully it finds some support, so you can say that you found shares. Everyone here has left, because you are a loon. See you in another 3 weeks, to laugh at you.
Secondary Shares To Be Issued at $2.20?
That was the last time just a few months ago. The company has to do a secondary or they will not be able to keep the lights on in Oxnard! They still owe Haldor $1 million correct?
Mathew Beale CEO: "CDTI sits on a Billion Dollar Opportunity"
From the previous cc. CDTI seems to attract so called executives that are shall we say, less than truthful.
CDTI Is a $1.50 to $2.00 Stock.........If That
I am now completely out of this POS company. Trash is trash and it is time to dump this PIG. I am not short this stock.
Save yourself some money and get out now before it is too late. $5 million a quarter is an absolute joke after listening to 5 plus years of the same non-stop verbiage, describing the same failures, quarter after quarter.
ALSO, AS OUR COLLEAGUE DB TUNAR AS DESCRIBED SO MANY TIMES, CDTI'S OWN AUDITOR HAS ISSUED YET ANOTHER "GOING CONCERN" WARNING (AFTER NUMEROUS OTHERS).
CDTI EITHER ISSUES ANOTHER 3 TO 5 MILLION SHARES TO YET ANOTHER GROUP OF BAG HOLDERS, OR, THE COMPANY GOES BANKRUPTCY.
CDTI IS BURNING APPROXIMATELY $1,620 PER HOUR, EVERY HOUR OF THE YEAR, ACCORDING TO MY CALCULATIONS.
GET OUT WHILE THERE IS STILL TIME IMO.........I DID!
CDTI To Issue Another Secondary This Quarter
My guess is another 3 to 5 million shares at $2.25 to $2.50. Otherwise, Bankruptcy looms!!!!
Regardless of management's spin they squandered another $3.5 million this past 90 days. CDTI's last secondary just a few months ago was at $2.20 (?) after issuing shares to themselves at $1.60, and then to private investors at $2.20 (?).
CDTI IS BURNING THROUGH, ARE YOU SITTING DOWN, $1,620 PER HOUR EVERY HOUR OF THE YEAR, 24/7.
$3.5 MILLION DIVIDED BY 2,160 HOURS IN A QUARTER. THIS IS NOTHING NEW, IT HAS BEEN THIS WAY FOR THE LAST 3 TO 4 TO 5 YEARS IF YOU CAN BELIEVE THAT. I KNOW, I HAVE BEEN HERE 6 YEARS. THESE ARE REAL CASH FLOW BURN NUMBERS THAT NEVER CHANGE! AND ONCE AGAIN THEY ARE OUT OF CASH!!!!!!!!!!