{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"116 - Learning from mistakes you narrowly avoid $MCLDF","description":"Mental Models discussed in this podcast:  Confirmation Bias Skin in the Game  Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.&amp;nbsp; Follow me on Twitter and YouTube Twitter Handle:&amp;nbsp;@TreyHenninger YouTube Channel:&amp;nbsp;DIY Investing Support the Podcast on Patreon This is a podcast supported by listeners like you. If you\u2019d like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at&amp;nbsp;DIYInvesting.org\/Patron. Show Outline The full show notes for this episode are available at&amp;nbsp;https:\/\/www.diyinvesting.org\/Episode116 mCloud Technologies - $MCLDF  SaaS company  Trading at just 1x expected revenue   Energy efficiency (Oil and Gas Plant efficiency) Green Energy (Wind Turbines, HVAC efficiency) Uses AI  Problems:  Cash flow negative (Presumably in the name of growth) Regular ongoing stock issuance and dilution  Both shares and warrants &quot;An assumption that this is the last time.&quot;   Very promotional management (with skin-in-the-game?!?) &quot;Uplisting to the NASDAQ&quot; talk  A lot of examples of SaaS names going from 1-2x revenue while on the Canadian TSX market to 10x+ revenue on the NASDAQ in the US Still hasn't occurred many years later   Mergers and acquisitions using stock (Not cash, because they don't have any) Growth targets include non-organic growth (REALLY BAD)  Dilution is required, but it makes it impossible to model per share returns   Exit: Liquidity event needed for the payoff (Either sell to another company or an uplisting)  Lessons Learned:  Don't buy promotional companies Don't buy companies that dilute Don't buy companies that can't self-fund growth Insider ownership does not equal skin-in-the-game Be wary of 'uplisting' as a catalyst  Summary: Investors need to constantly be wary of confirmation bias and stay alert for possible red flags. mCloud Technologies stock $MCLDF taught me this lesson. Don't buy promotional companies that dilute shareholders and can't self-fund growth.&amp;nbsp; ","author_name":"The DIY Investing Podcast","author_url":"https:\/\/www.diyinvesting.org","html":"<iframe title=\"Libsyn Player\" style=\"border: none\" src=\"\/\/html5-player.libsyn.com\/embed\/episode\/id\/18873353\/height\/90\/theme\/custom\/thumbnail\/yes\/direction\/forward\/render-playlist\/no\/custom-color\/1b07f0\/\" height=\"90\" width=\"600\" scrolling=\"no\"  allowfullscreen webkitallowfullscreen mozallowfullscreen oallowfullscreen msallowfullscreen><\/iframe>","thumbnail_url":"https:\/\/assets.libsyn.com\/secure\/item\/18873353"}