$SoundHound AI (SOUN.US)$ so let's look at the financial sit...
$SoundHound AI(SOUN.US$ so let's look at the financial situation of SoundHound they borrowed $130 million at 12.5% interest that cost them $4 million dollars every 3 months that's 12 million dollars a year in interest payments not principal just interest think of it as a credit card. interest rates are not falling that means they're not going to have the ability to refinance that which means they have one choice continue paying $4 million every 3 months and just interest or they have to pay it off well they don't have the cash to pay it off now so they're going to do another offering but the company is not going to use the money from the offering to pay off debt because now that exhaust a big percentage of the stock offering so they will remain in debt and they're burn rate now gives them money to last about a year and a half before they have to do another offering.. and I contend that before the end of this year they will have another shelf offering and dilute shareholders even further.. and the nail in the coffin is going to be 400 million shares of the float with the declining stock price and this is where I see a reverse split and I've been saying this for a long time and I believe it's going to go back down to about two and a half dollars a share this year and I think you will see a 5 or 10 to 1 reverse at that point in time
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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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10baggerbamm OP : and when they do this if you think short sellers were on this company when they reverse split it they will Hammer the piss out of this stock sending it right back down and then everybody that's a shareholder gets wiped out because I believe this company made a huge mistake by going public with a spac. and I can very easily see this company after reverse split in the stock collapses buying the company back making a tender offering going private and then in a year or two years going public the old-fashioned way and commanding a much higher valuation that's what I see happening. the company is proven themselves to do one thing well piss Capital away their patents are worthless that's why they bought a company that uses chat why would you buy an inferior company if you have a superior technology you grow your business organically by convincing others and showing them that you have a better solution but clearly they do not have a better solution and even chat is falling way behind current technology that exists.
10baggerbamm OP : I Believe by September of this year if not sooner you will see the stock in the $2.80 range I am extremely confident and where I see this going
AUgainer42069 : $2 this month
to the earth
10baggerbamm OP AUgainer42069 : it may be a lot sooner than September you could be right but I'm telling you as sure as I'm sitting here that this company will be doing a reverse split and it will probably be 5:00 to 1:00 7:00 to 1:00 I don't think 10:00 to 1:00 but it wouldn't surprise me and then the stock is a dead short and that's not me saying it that's 35 plus years in the business that's experience talking and everybody sees this and they're waiting for the reverse split so let's suppose they do a five to one that puts it at $10 a share shorts will slam it right back down to four or five bucks and that'll happen very quick because everybody's leverage has been destroyed as a result of the reverse split and they'll just sell when it goes down for tax losses this stock is a disaster and I seriously doubt they will be in business this company in 5 years