expectations, page-6

Hi Drew,
Good post.
I am not going to speculate regarding the number of deals that will be signed in the next 6 months however, I think it is worth remembering that NONE of the companies have said no. Some of these companies, would be approached by industry every day trying to get them to use / test their products.
These companies have huge R&D budgets and some of them have been testing M&G for a considerable time. (years)
My view is that these companies will eventually sign with ADO and you will be able to take comfort in the fact your investment in ADO will be protected for a considerable amount of time due to the testing required to change but also the quality of the product and how adaptable it is depending on its intended use.

I dont have a science background but I also got the impression (and TWIN, DS, ect) maybe able to help out here, but part of the delay hasnt necessarily been that M&G isnt the goods, rather they wanted more from the company. ie ADO to develop blockers to compliment the product.

In another note, I was also intrigued as to why the number of testing companies hadnt greatly increased and it was great to see that the company has stated that they dont want to stretch themselves too far. Im sure this will change when more cash starts coming in and you will see that snowball effect that many on here have talked about.

I just got back from 5 weeks in the US and was really hoping to have seen a new signing. Hoping for one by year end!

One other thing to take into consideration regarding this company which some may lose sight of. With Interest rates going down in Australia (and looking to drop further) and close to zero in many western countries you will see two things start to happen provided the economy doesnt collapse.

1. Retirees will move their money from deposits as the rates drop chasing higher returns. Many investment companies are targetting this and recommending companies with high dividends as they provide higher returns. Whilst we are no where near that position, I cant help but feel as the baby boomers start retiring in droves over the next 5 years you could see a flood of liquidity coming into these sorts of companies.

2. Low interest rates generally encourage investors to borrow to speculate in markets. Mortgage rates have dropped to GFC levels and look to go lower. A decent sized signing could see huge speculation in a stock like this.

Anyway enough from me.