There are too many ASX companies that list with the notion of 'proof of concept' on very low revenues & with good 'tales' from the CEO. Unfortunately micro caps aren't legally able to give forecasts for revenue / earnings & are only required to detail (& monitor) how the funds raised will be/are used. Often that is no more detailed than 'marketing' or 'working capital'.
So personally I steer clear of anything without a proven mngt track record of delivering on what they say in previous quarterlies or reports. Nothing worse than a CEO who just lists endless 'opportunities' each quarter & then never revisits them again.
Having actually worked on stock exchange releases I know it's more about what's not said than actually is most of the time. If something is omitted from a release, assume it's bad until proven otherwise.
So I look for companies that are not only consistently growing but also either (EBITDA) profitable or will be profitable in the next 12 months. For that reason i don't do resources or software companies & also avoid anything to do with retail.
I stick with what I know which is usually financial services. As Buffet says never invest in something ypu don't understand.
