The Black Hole of Scio Galactica

The Black Hole of Scio Galactica

Category:

Diamonds

In a previous article, we discussed whether lab grown diamonds are just a pipe dream, and how I thought that the idea of Scio Diamonds getting new investment capital might be like throwing money into a black hole in cyber space. Well, here comes Scio again, with “fantastic news” that their sales have doubled in the past quarter. But at what expense?

Scio Galactica, is it the black hole of lab grown diamondsIf I’m interpreting the data provided in their latest investment snap-shot, the cost of producing the lab grown diamonds that they’re selling, is about twice as much as the sales-price of the diamonds being sold… Now I’m not an accountant, or some fancy-schmanzy CFO, but it seems to me that if you’re spending a dollar to make fifty cents, that you’re not a profitable diamond company, you’re the U.S. Government.

Okay, maybe that last statement is a bit harsh, since Scio is not stealing money from people, but it stands to reason that the only people who might think that it makes sense to spend $200.00 to sell something for $100.00 and then consider that “growth” would be an organization run as well as our government ~ right? Add to that the ongoing operational expenses, consulting fees, and the like, and it’s easy to see how their newly acquired capital will dry up quite quickly.

Surely, we can expect a new ‘fantastic’ announcement within a few months that there has been a new investment-round. I wonder if Leonardo DiCaprio reads my articles, but he should, as he just invested in a similar producer of synthetic diamonds. Leo, your money will go up into air, with most probably a lot siphoned off to certain parties in the form of professional and consulting fees.

Have I got a deal for you if any of this seems like a good investment for you… Ready? Here it is… I’m fully prepared to exchange $50.00 for every $100.00 that anybody would like to “invest” with me, there are no limits, but all transactions are restricted to cash, and your half of the proceeds will be remitted within 30 days after your funds have cleared. Bueller? Uh, hello. Bueller?

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