What's going on here?31 May 2023 10:14
I've been watching this company with some interest for some time, mainly because I think the technology is interesting and *should* have a place in this world.
What I've never been able to wrap my head around is exactly how and with what certainty this company has a business. The business model is extremely convoluted and requires constant financing. I'm aware that there are, what I simplify as, reference projects in certain countries, which depend on an entity taking them over and giving EQTEC their return.
In the current scenario, with £20m market cap and very little in the bank to fund ongoing business, and management with a track record of (seemingly) not being able to deliver, what stops this going bust in the next year? They are seemingly looking to have entities buy out their projects at the worst possible time. I'm not trying to de-ramp, just looking for some opposing views that justify why anyone would invest / keep their money in this company at the moment. Each time I watch a video with the Directors, they seem like they are bumbling around, now the CEO needs support on the videos they put out too. Money is not cheap at the moment, nor easy to access, so the question around how EQTEC survives is a serious one. Aside from a speculative 'someone might take over that reference project' - it all seems a little thin.
Full disclosure - I'm not currently invested, looking for a reason to rule out or keep an eye on it. Also - I'm not an expert on this company, my comments are just passing observations.