Strong Sell
Re: Looks like the Ramp is underway
6 quarters is not "too quickly" - especially when you consider that Jeff originally expected to be cash flow positive this past Q1 (reread his Q1? CC after the Atmel deal closed). And he told me personally that the financials of the royalty piece looked good in the out years. They have pushed profitability now back to 2018 - right?
Their ability to forecast is really suspect.And that makes their viability, without a ton of additional dilution, a non-sure thing.
If they were sitting on a ton of cash, or if they hadn't almost quintupled the shares outstanding (from 12 before the class action settlement to about 58 fully diluted), I'd cut them a lot more slack. But neither is true.
How many quarters do you think, realistically, they have to show real commercial progress - like, say, $3-4MM revenue per quarter?
Eric