THEY CRASHED THE STOCK. UNREAL | Summary and Q&A

TL;DR

Very Good Food Company announces plans to expand into China while also diluting shareholder base, causing frustration and disappointment among investors.

Key Insights

• 🤨 The Very Good Food Company's decision to expand into China raises concerns about their priorities and lack of focus on developing their US business.
• 😤 Diluting the shareholder base without a clear need or positive market conditions damages investor trust and creates doubts about the management team's competence.
• 😑 Corsair Gaming's decision to pre-announce their revenue miss demonstrates transparency and efforts to gain investors' trust, despite a challenging year for the company.
• 🥹 Trust and confidence in a management team's decision-making are crucial factors for investors' willingness to hold or invest in a company.
• 🤨 Stock price performance alone should not dictate decisions on raising capital; timing and market conditions must also be considered.
• 😤 Small-cap companies like Very Good Food Company may face additional scrutiny and skepticism from investors due to their management teams' uncertainty.
• 😀 Supply chain issues continue to impact companies like Corsair Gaming, highlighting the challenges faced by many businesses in various industries.

Transcript

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Questions & Answers

Q: Why did Very Good Food Company's decision to expand into China surprise investors?

Investors expected the company to focus on building their US business first, making the sudden expansion plans into China unexpected and questionable.

Q: Why did Very Good Food Company decide to dilute the shareholder base?

The company aimed to raise $30 million through dilution, a move that investors found infuriating, considering the stock's already significant decline and the lack of urgency or high stock price.

Q: What impact could the dilution have on investor trust in Very Good Food Company?

The dilution creates trust issues among investors, as they question the management team's decision-making and worry about future dilutions without warning.

Q: How did Corsair Gaming handle their revenue miss announcement?

Corsair Gaming pre-announced their revenue miss due to supply chain issues, allowing investors to assess the situation and make informed decisions. The management team's experience and transparency mitigate disappointment.

Summary & Key Takeaways

• Very Good Food Company announces expansion plans into China, surprising investors who expected them to focus on building their US business first.

• The company also decides to dilute the shareholder base in a massive way to raise $30 million, angering investors and creating trust issues.

• Corsair Gaming, on the other hand, pre-announces a revenue miss due to supply chain issues, but investors remain hopeful for the company's long-term prospects.