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MySQUAR: A cash-burning, “jam tomorrow stock” – AVOID!

By Cynical Bear | Thursday 5 January 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

A tad surprisingly, I got into cryptography at Christmas so, taking inspiration from a mighty opus in that domain, I thought I would look at a shockingly, disappointing stock, MySQUAR (MYSQ), using a particularly odd approach. No trophy for working out my antics as you may actually find it a risky topic to Disqus, but can I actually do 400 words on this stock in a fitting way with my customary virtuosity?

Anyway, on to MySQUAR.

It is astonishing that this company has not had much of a look-in on this fabulous organ, although Tom did do a bonus podcast on it last August, as from its IPO at 10p in July 2015, it now sits at around 2.125p, a calamitous fall by any standards, and no sign of stopping soon in my opinion.

MySQUAR has a focus on various things in Myanmar, a significant flag of its own. It has social gaming apps, a chat application, MyCHAT, and a VOIP application too….but it is highly loss-making. It is burning through cash alarmingly; in last annual accounts, it had incomings of only $795,000 and cash outflow, ignoring funding rounds, of $2 million.

It had a product launch just following Christmas of a gaming application, ChakraNinja, a young Ninja from a manga comic that is highly popular in Myanmar via TV, films and books. But, social gaming is tricky. MySQUAR is looking for that all important big gaming hit as acquisition costs impact profit significantly and IOS and Android’s cut is substantial too. Without finding such a winning application, cash will vanish continually.

Funding is tough too. It had a placing of £455,000 in August 2016 at only 3.5p and following that it has had funds from a similar company to Darwin, in particular, $1 million in Q3 2016 and it took an additional $2 million just prior to Christmas. This is an astonishingly fast burn - I could call it “La Disparition” of cash to push a particular link far too hard!

Accordingly, in my opinion, it will drop from its stock valuation pursuant to ongoing downwards funding spirals and accompanying cash burn. I would stay away from this as think a grim conclusion for individuals holding stock is forthcoming.

Short summary – A VOID!

Not bad; just hit 400 words…..but don’t think I will try this again. It’s far too difficult and my vocabulary is far too poor.

(With an apology to an amazing author, Gorgs Prc)

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