Isodiol International (ISOL.C) is a company which equity.guru, a competitor of mine, has had harsh indictments of in the past.
I would like to rebut these claims and bring my honest opinion to bear. Here is what the publication’s founder said in May of this year:
Just sat with folks from Isodiol $ISOL – who wanted to become a client 6 months ago but we challenged them to fix their deal first. Update: They’re working on it. Not ready for primetime yet but have laid out fixes over the next two quarters, admitted previous mistakes. Watchlist
I am afraid that this is where Mr. Parry and I differ in terms of opinion. It is my firm belief that Isodiol International is an honestly-run corporation which has been blown onto the rocks by headwinds out of their control.
The company has $3.17M in cash assets as of the end of the second fiscal quarter of 2019, a sizable increase when compared to the end of the previous quarter, a paltry $403 thousand.
The company also has $2.2 million in long-term receivables: this shows that the company has patience when dealing with clients, and patience is a virtue, according to the Good Book.
By now, we have established that the company is not only run by smart professionals who know how to raise capital, but also that they are a kindly bunch who do not mind waiting and waiting and waiting further to be paid. Only the well capitalized can be so patient!
The company’s loss-per-share was also six cents this quarter, down 50% from the same time last year. Progress!
All in all, as you can see from the document below, the company’s assets clearly outweigh their liabilities. Nevermind the bad debt, convertible debt and the $178 million accuumulated deficit. Isodiol has prepaid expenses, deposits and leasehold improvements!
It is with all sincerity that I say there is nothing to see here, my friends, except exceptional management. The chart be damned!
So what the company has actually increased their spending on professional fees as their stock teeters on the brink of oblivion? Do professionals not deserve their second beach home in Cabo?
The same can be said for the company’s advertising budget, nearly doubled since last year and now standing at just over $1 million. If nobody were paid to promote this company, how would you poor rubes fine people ever learn about this diamond in the rough? (Note to self: as assistant to remove line about the poor rubes.)
Losses of $4 million in a quarter are nothing to be concerned with, nor are the company’s contracting revenues. Modern Monetary Theory concedes that deficits are not inherently harmful so long as inflation does not exceed expectations.
And is a nation not simply a corporation with sovereign status? Paper is meant to be printed, and we have no shortage of it at any of the many fine stationary establishments I own. Let them eat paper!
–Mr. Millionaire
Full disclosure: Mr. Millionaire is a class warrior of the bourgeoisie caste and his interests are wholly unaligned with your own.