Monday, March 27, 2017

RoodMicrotec shareholder financing

Update 2018: 2017 67 million shares x EUR 0,27 per share -> Market cap: EUR 18m
Company seems to be breakeven, sales are up towards EUR 18m per year. Price is 1x sales.
RoodMicrotec is a small "semiconductor company supplying products (chips and packaged devices) and services."

In the past few years it has been losing money whilst selling shares to finance operations.

Share count:
2013 39 million shares
2014 43 million shares
2015 54 million shares
2016 63 millions shares


In total 24 million shares sold to investors at an average price of roughly 20 cents each, resulting in 4,8 million Euros flowing into the company. Today total equity (book value) is only 4 million...

Shareholders are the only thing keeping this company from going bankrupt.

2018: Conclusion: Not a stock for the Graham Defensive Investor.

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