Investors in Remote Monitored Systems may have scored a victory against the board recently by voting down warrants, but the company continues to make a mockery of investors.
There have been many red flags for Remote Monitored Systems over the past few months – ranging from its non-exec chairman selling out of the shares entirely at supposedly one of the most promising times for the company through to the delay of production in its ‘COVID-19 killing’ face mask due to engineers having to self-isolate due to COVID-19 protocols.
The delays and excuses continued today and it is no secret that we are not a fan of Remote Monitored Systems because of their behaviour and how their biggest shareholders have made huge gains based on retail investor appetite ( Should I buy Remote Monitored Systems shares? Ten reasons to continue to run for the hills ).
The new excuse is that the company will not be able to produce 5 million masks per month (and who said it had the demand to do so…) and that current production rates are ‘significantly below’ these levels with a number of issues needing to be addressed to improve capacity.
As usual, it teased investors that things are not so bad as its looking to improve the capacity and looking how to further exploit the anti-viral mask ‘technology’ which will be confirmed in the ‘near future’. And even more admirably it has managed to ‘secure the key raw materials for the next few months’ despite the ‘significant worldwide demand’ for some of the materials’ its mask needs.
That’s all well and good but there is no indication that there is ‘significant worldwide demand’ for its masks!
Our View: Investors Continue to be Made a Mockery Of
There is nothing fundamentally worth investing in here – its missed the COVID-19 opportunity, it hasn’t produced any masks, it does not have the capacity to deliver the amount it said it would, it does not have any firm orders and ultimately management and old and new has not delivered.
Investors should also be careful even after today’s dizzying fall, it was trading at 0.4p not so long ago and the only thing that has changed since is a whole lot of hot air.
Traders may like to continue to take a punt but the boy can only cry wolf so many times and this seems the final time.
Its real shareholders deserve better.