$SoundHound AI (SOUN.US)$ the question that no one is asking...
$SoundHound AI(SOUN.US$ the question that no one is asking what's going to happen to the stock when they announce a $500 million offering because they have a shelf offering in place and if you listen to the last conference call and you read the transcript they said at any point in time and if you read the risk characteristics they had $130 million they borrowed a 12 and a half percent interest they spent 90 of that million last quarter The debt service is 4 million a quarter this quarter they should be down to about 60 million left so there are absolutely going to need to offer a lot of shares to raise a lot of money and that's going to dilute shareholders yet again they'll be over 300 million shares in the float by the time this is done.
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Brett Hagan : Why would they do this before an earnings report?
10baggerbammOP Brett Hagan: well the stock they're selling you can look at it they destroyed the rally last year June by selling tens of millions of dollars with a stock the Insiders and the same excuse all they've had since 2005 they sent it from over $5 back down to $2 granted it's different this time because you have almost 300 million shares traded it never happened before you had 35-40 million which was a huge day a year ago June but the shelf offering is going to be needed and you should read the risk parameters in their filings because they are in desperate need of cash right now they're spending $16 million a year in interest payments on the $130 million that's what's listed as cash on their balance sheets right now it was 90 million last quarter cuz they spent down over 30 million 40 million technically so it'll be down to 60 million there about this quarter they need money for operational purposes so I guarantee you there's a word guarantee you there will be a shelf offering why because it's in their 10q 10K filings it was in the conference call last quarter and everything is in place and typically you want to sell when a stock is rallying because a buyer will absorb it and feel much more comfortable buying into a strong market than a weak market but this company is already diluted shareholders once from when it was a spac till last year they added almost 80 million more shares. it's now 220 million shares and it will be over 300 million when this offering is done that's extremely deluded it creates a lot of liquidity for trading but it's very dilutive if you are a current shareholder
Urn2nd : a common sense note!! lets not forgrt that NVIDIA has there back as well as an investment of 300 mill. if they see something i see something. jst saying
MackMoneyRu Urn2nd: Yep… I saw this as well.
10baggerbammOP : the backlog is known it's not news it's already known the primary reason for the backlog is because they structure their model in a 6 to 8 year time frame so they don't have the ability to fulfill on White Castle if White Castle said we want this done in 6 months drop everything you're doing I put it in every one of her stores they can't do it that's why they have a backlog there's all this chatter and I see on other forms on McDonald's McDonald's has their own product MC Labs at IBM acquired they're building out their system McDonald's is going to roll their system out Nationwide and globally within about a year and a half period of time frame SoundHound doesn't have that ability to deliver in scale again that's why they have a backlog.
Urn2nd 10baggerbammOP: So are you invested in Soun. Or are you just downing it?? There are risk involved in many stock if not all. We have to use our own judgment.
10baggerbammOP Urn2nd: I've owned this company traded this company in size since may have last year I'm intimately familiar with everything that's going on in the company
Stockfishing 10baggerbammOP: Newcomers not seeing the share dilution to come. They can trade it though, they should have another 6-8months of cash.
Brett Hagan 10baggerbammOP: Thanks for the info that all makes sense