FVRG

[Jimbo]

So against my better judgement I took a flyer on FVRG some time ago. It has done nothing but slowly decline.
I don't understand how a company can always report 400% growth in sales month after month but yet fall.
Will ride this broken down dog right into the ground.

[EricL]

I've lost plenty of money in speculative small caps in the past as well back in my pre DGI days.

FVRG has a $20M market cap and while it has grown sales the last 3 years its SG&A expenses have grown just as fast.

I would be surprised if you ever make out well with this company.

[Jimbo]

(07-24-2014, 05:04 PM)EricL Wrote: I've lost plenty of money in speculative small caps in the past as well back in my pre DGI days.

FVRG has a $20M market cap and while it has grown sales the last 3 years its SG&A expenses have grown just as fast.

I would be surprised if you ever make out well with this company.

Ok. I'll bite, what is SG &A?
Not lookin to get rich, just curious as to how a company can continue to increase sales, yet slumps poorly. Not too worried, will ride this to the ground and keep the bad memory in my mind to not take a flyer like this again.

[EricL]

Sales, General and Administrative expenses.

If you look at their most recent 10-Q here you can see that revenues and gross profits have been going up but with sales and marketing quintupling from $1M to $5M and General/Admin more than tripling from $835k to $2.6M they still aren't making much of a profit.

Reading through it sounds like they had a new product towards the end of 2013 that greatly increased revenues but also had higher expenses due to the ramp up and increased payouts for commissions to members and hiring of new employees.

I know nothing of this company other than the 5 minutes I just spent looking at the 10-Q. Who knows, maybe if they don't go bankrupt or get de-listed they can continue the growth with the new product and end up making some money in the future.

If nothing else its a lesson learned, we've all been through them!