Hi Mike. I think Digital Gem has some good ideas, but the question remains – can they do enough to make their concept work?
Hi Mike. I think Digital Gem has some good ideas, but the question remains – can they do enough to make their concept work? The stock was a investor favorite during the “dot.com” mania, but as reality has set in the stock price has plunged. There is no question they are getting at least some business – most recent quarterly revenues were $2.1 million. But, what are their costs like? My best guess is they are losing money hand over fist. They have put together a very expensive operation to run, and I don’t see them making much money for awhile. What makes their road to ultimate profitability even rougher is that they already have over 150 million shares outstanding (to be more exact, I believe they are up around 170 million shares, plus a ton of unexercised warrants and options which could substantially raise that number). That is an enormous number, which not only limits their ability to raise additional money to finance their growing operations, but may also lead to a reverse split so
