Q: is there any merit in investing in this company as a highly speculative venture. While the price has totally collapsed, they have hired a few high positioned people in the past year and seem to have been doing business with companies as large as Amazon, albeit not huge at the moment. Is there AR and e-commerce worth anything? Thanks
5i Research Answer:
We would never endorse an $8.5M market cap company. Risks are just too extreme. Just to stay public costs a lot of money, and the company already has some debt, has never made money, has highly negative cash flow and is going to need more capital just to stay afloat. There is a reason the stock is down 86% in the past year (-55% YTD). It does have some revenue, and insiders own 11%, but this is a lottery ticket at best and we would not want to own it. Dilution can be a killer for tiny companies.