Though traditionally a company’s Initial Public Offering prospectus is vague and difficult to sort, Mota Group’s (Pending:MOTA) prospectus clearly shows a troubled organization, with troubled leadership and a flawed business plan. The company’s drones will likely fly higher than the post-IPO stock price, and I would avoid or short.
Company Description (from the company’s prospectus)
MOTA Group (“the company”) designs, manufactures and markets consumer products – including recreational and commercial drones, smart wearables and innovative mobile accessories for smartphone and camera users. The company tries to identify opportunities where users can benefit from new technology, identifies the gaps and areas that can be simplified and enhanced, and develops these opportunities into products. Since 2012, MOTA has sold and shipped over 1.7 million units worldwide.
Mota Group has two principal divisions:
MOTA – Develops, manufactures and markets recreational and commercial drones and other unmanned aerial systems, also known as unmanned aircraft systems or UASs. The company has two lines of drones: recreational (consumer) drones (under our JETJAT brand) and UAS platforms for commercial applications (under our Pro Live and GIGA brands). Many MOTA drones are capable of delivering real-time video, automatic control, tracking and geographic data, which increases flexibility in planning and execution. TAMO – Designs, manufactures and markets stylish wearables, including smartwear, virtual reality products, portable power products and mobile accessories.
Thesis and Catalyst For Mota Group (MOTA pending)
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