something is rotten, page-7

I find some peoples' (i say people not investors) approach to the sharemarket (i say sharemarket not investment) unbelieveable. All shares trade up on good news and tend to fall back afterwards. Anyone that thinks Thursday's announcement gives us an automatic $3 share price is a fool. It was postive news which should attract some interest in the stock. But many will wait to see that the plan becomes a reality. That announcement contained a huge caveat - i.e. they get a 50,000 unit order if they meet certain targets including a product life span of increase from 2 to 4 years.

Until they achieve that, they have nothing. But they are confident of getting there and more importantly they have doubled KW output. They are sufficiently confident that they are spending 12.4 m euro on a production facility.

I see no problem with it trading back to 40 cents. Such does not mean something doesn't smell right. It just means that others dont want to take a risk on the stock. And in the present market, many have been very badly burnt and are very risk averse. And let's be honest, if these guys pull this off there will be much more in this stock than a 60 - 80 cent shareprice. Missing the first 50 cents to $1 won't worry most investors ( I say investors not people). 12 months ago investors paid $17 for pivot now they happily pay over $100 with an expectation of a return.

For mine, Thursday's announcement was a major achievement towards suring up the future of this company. I am happy to see such positive progress and will continue to hold. I am sure that others are keeping a close eye on this one and will jump in on when thing sure up a little more.

I should be upfront though. I was in this around $1 got out on the lack of positive news and flagging price (for a small loss) and jumped back in sub 50 cents. That probably colours my judgement.