Encouraging Report, page-65

I think Jeff has done very well in terms of exposure for his magnetic technology and the association with P&G.

But it promised more.

It was going to be disruptive in so many areas but the technology has now become trapped in the cosmetic tentacles of P&G.

Sure OBJ has cash and a measured royalty flow from P&G - but the market expected more, a lot more.

Limited expenditure for a company with claims that it provides a disruptive physical technology to numerous product applications does not mean financial health. It means they have battened down the hatches and not sure of the road ahead.

Debt is not an issue provided it leads to a clearly defined goal with milestones and all the commercial elements put in place.

Make no mistake, OBJ has been good to me in the past. But this is now. I made money on the "story"

I keep looking for the time to get back into the stock but there are issues that concern me. Firstly Jeff's total control over the company. That for me is a concern. Its like a one man band. Glyn his right hand man was employed part time - I asked him when I had a substantial holding in OBJ and he told me the hours that were devoted to OBJ. It was not full time

The executives are now Jeff and John Palermo the company secretary. Much the same as it has always been. Basically and in reality - Jeff.

I think the market is now asking - we were promised an awful lot by Jeff, but it "appears" now that company delivery is down to one application with P&G. Has the company traded off its commercial position to get traction.

At this point there is nothing else. There is talk of "something" else but that has always been there.

The interesting part about being linked to P&G is the company now becomes exposed. Yes, the collaboration is noble but could it be a poisoned chalice.

One of the elements of developing a business in my opinion is to control your own destiny. Make your own decisions, call the shots, make a deal negotiating terms and walk away if they do not meet your criteria. Has OBJ done that ?

Once you relinquish that element you lose total control.

Its gone!

Your destiny is then in the hands of the buyer of your product/technology. eg P&G /OBJ - your call.

The investor imo is being left out of the equation in many micro caps. Once there is uncertainty it leads to selling irrespective of the "story". Breaking even is no longer an option. Sure its nice and makes for a conservative comfortable bland company. Every one gets their salary on the payroll and the share price trades within a minimal range, cash in the bank, but nothing is happening.

So, now OBJ has to confront the reality. Remain attached to the appendage of P&G advising shareholders of the royalty filter as it occurs and watch the share price trade in the current levels or break out.

Firstly what is the OBJ technology and what are its applications to the broader market. Do you know ?

It does not require FDA or regulatory approvals from my understanding. So in essence it becomes a technology that will need millions upon millions spent on marketing the magnetic "concept" for any company to recoup their investment.
This suggests that OBJ cannot survive with the likes of a P&G and if this company decides the technology has run its course.

OBJ does not have the clout to market its own "concept"

So, if that be the case, then currently OBJ's share price will be "controlled" by the drip feed of royalties from P&G.

Is that an exciting option for a potential investor. Maybe that is why the share price is at its current levels.

Just an opinion