DTS 6.25% 21.3¢ dragontail systems limited

Shady Financial Reporting + Death Spiral, page-11

  1. 134 Posts.
    thinks AlphaDawg hass got his investment banker hat on.
    dts puts out misleading press releases (e.g. claims Manhattan Pizza is using when no Manhattan Pizza stores are using DTS).
    more importantly DTS is burning more than 1.5mm -2mm in cash per quarter or 6mm-8mm annual burn. it has to issue a lot of stock to raise even 6mm to cover one year of burn. typically you cant raise more than 10% of ones market cap in an equity offering. market cap is not large enough to issue enough stock to cover its cash burn.
    at current rate, appears that dts will run out of cash by this time next year.
    = death spiral
 
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