I tried to find the Reuters article Rjsimps but couldn't find it within their website, and no I am not a subscriber so am not aware of what may have been read. But I have found that for most investors already invested and following a stock research analysis tends not to say much more for these smaller cap stocks that you don't already know - clearly they can't say anything that isn't in the public domain anyway, their research is more relevant to potential investors who are unaware of a particular stock.
The last few days trading has been most interesting to watch, particularly knowing that the AGM has only just occurred and there was no AGM presentation posted by the company. I don't know if anyone learnt something more from the AGM, I presume it was mainly about getting the resolutions passed and minimal else took place - I am happy to be corrected (anyone attend the AGM?).
In regards to the trading, the following 2 days to the AGM there was 27 million shares traded, value $1.95 million, with at least one shareholder wanting to get out at almost any cost. And yet despite that dumping some investor/s took up all the shares on offer. I was quite impressed. But let's just take a step back and see what has just been announced late last week:
Eagleview has effectively de-risked the technical capabilities of the Spookfish technology, confirming that after completing due diligence it was prepared to offer a large amount of cash by way of a variety of means (convertible notes plus series of options) to take up to 19.9% equity in the company, to enable the company to earn a royalty with its move into the Eagleview business in North America, and that provides SFI with scope to refine its move into the commercial space, and to ensure that can be transitioned with considerable business action via Eagleview clients. At the same time it ensures that SFI can further develop its technology ultimately to a Gen 2 imaging without the need to raise any further cash via the market within the next 12 - 24 month period!
And since the funding via Eagleview is being held as a strategic cornerstone investor this means it doesn't end up on the market as would be a general placement if completed via the usual market arrangements.
My overall view is that the Eagleview transaction is a positive for a number of reasons, and I frankly scratch my head when I saw the continuing dump the past couple of days. I presume the dump has almost dried up, and the fresh investment dollars now expended by whomever bought the shares are clearly not going to be in the market for a quick 5 - 10% return. I wouldn't be surprised that the next positive announcement by SFI, which I presume shouldn't be much longer coming in regards to commercial transactions completed for the Australian imaging scene, could see the share price take off. At the moment I believe we are getting the last opportunity to buy shares at a bargain basement price, even though of course there are always the ups and downs on a daily basis that occur with the whole market.
I am a long term investor in SFI, and believe that the next 6 months should be exciting, in a positive way, for the company!
GLTAH
SFI Price at posting:
7.2¢ Sentiment: Buy Disclosure: Held
