Velpic in SaaS Market Analysis, page-15

yep gone to the sidelines for now GrimWally. I did not like the fact it made a new low so took advantage of the bounce and went to the sidelines. My concern before that was the lack of new signings. I think it was sharks who said that I need to be a bit more patient and that we should expect a longer lead time and that it could take months to get things rolling with the BDMs....but my principles were built on what the company themselves said as retold to us in the Ballieu mark 1 report. 20% month on month growth was expected with a cash burn of 300 - 400k. This was to pave the road for a transition to cash flow positive without the need for further capital. But by Ballieu report mark 2 we were talking 14% month on month and a substantially reduced predicted revenue for this year. Since then it has gone totally quiet on the new enterprise client front and we have seen new lows and, horror upon horrors, we have seen Ballieu as one of the big sellers. To me this is all smokes signals that all is not well. Furthermore I worry that the cash burn may have increased as they may have taken urgent steps to bolster the signing of new clients. But whether that is the case or not will be revealed in the quarterly.

I still believe they have a superior product but for reasons that elude me the demand for it has not been as overwhelming as I had anticipated. I still have it on watch and would not hesitate to jump in up to my chin should fundamentals begin to look more favourable....but for now capital preservation takes precedence. Good luck in the meantime to everyone here.