TV2 (ASX) Research

Originally posted by Kristian333 ↑

It amazes me every time the thinking of investors here.

I guess investors buy into a business because they assess the underlying business idea believe in the competitiveness and that it promises profits in the future.

In particular with technology start-ups rewards can come very sudden, be very high can come very fast. (BUD, BIG, JIN, KNM, KGN, FGF...)

As a result investors in tech companies have very high expectations when it comes to returns. (Rightfully so as the risk taken is substantially higher than investing in blue chip stock).

Due to the nature of start-ups on the one hand changes can be substantial and the market requires updating on the other hand the businesses are also prone to delays and unexpected events.

So when for a certain period delays are encountered or updates are not made (due to management working their butt off to make it happen) investors are becoming jittery and blaming management.

Investors do not hang onto every announcements made by Telstra and blaming Telstra management when no price sensitive announcement has been made for a couple of weeks.

My point is: Investors should invest in a business with what they are comfortable with and if they believe in the business they should give it some time and be prepared for delays. Even be prepared to get not the 100% perfect announcements. As long as the big picture is on the horizon what triggered the investment in the first place, I think it is worth to hang on.

If investors are not prepared for this they just should sell and move on, I guess.

K

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The restlessness comes not so much from the delays themselves, but what the delays represent, which in this case could be TV2U having to access the next trench of notes. What are we up to now? Trench F?

It's been extremely hard for the SP to appreciate because of the constant sell off - CN, DTs and holders that lost faith. With a few stocks in the sector running like NUH, FFG, FGF, DCC, SHO, ZIP it's understandable for people to get frustrated. There's people, like myself, who have been around since the GAL days and currently we are at a lower SP than when TV2 came in.

As for me, I'm enjoying the FFG run and will give TV2's management this week to come out with something of substance before taking my cash elsewhere.

All the best everyone.