$SoundHound AI (SOUN.US)$ the prevailing problems that exis...
$SoundHound AI(SOUN.US$ the prevailing problems that exist with SoundHound are the continuous selling by insiders that's number one because it shows a lack of confidence. they want retail us to take our paychecks and believe in them yet the first thing they do is take free stock that was given to them and sell which dilutes retail. that leads to the second problem they've diluted shareholders now almost 300% in 2 years. so you have a company at 1.1 billion valuation trading at almost 20x times revenues. that's egregiously overvalued especially considering their nominal ramp of growth internally. what they must work on to fix the second problem here is the speed that they can deploy and set up restaurants because four and a half years for a thousand chain franchise (white castle) is terrible.
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35+ yrs in the trenches, raised tens of millions for start ups, syndicate ipo's, yrs on trading desk mkt maker.
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practical NyanCat_76 : Your commentary is always great & logical!
10baggerbamm OP : Live long and prosper....
Spock
practical NyanCat_76 : But I read from somewhere, company is going to repay its $100 mil debt. Hence zero debt with net cash about US$ 180 mil.
10baggerbamm OP practical NyanCat_76 : they did they repaid their debt that was another bone of contention for me and I posted it at nauseam last year a hundred times over that they were paying $4 million dollars a quarter 12 million a year and just interest payments they were at 12.5% interest so now that's retired that's very smart that's the smartest thing they have done in a long time. what this means is they should be cash flow positive this year unless they're going to piss more money away 12 million a year and do something with it and I don't know what that X Factor is because the information released on SoundHound is very limited on a daily weekly basis. McDonald's will never use SoundHound unless SoundHound can subcontract out for fulfillment and say we can take a hundred stores franchise because most of McDonald's are and convert them inside of 6 months from start to finish. they're nowhere near that because kayvon said that the most challenging aspect are franchise owned restaurants and White Castle is corporate owned and they can't even convert all of White Castle in a reasonable amount of time