To be fair the new boss needs a lot of time to figure out what's going on and negotiate with current management on what to do. One thing that he did not say but Mal did was that AusCann no longer wanted to be a farmer. So they must have narrowed the focus to just pharma research. Even the production of their promised capsule is outsourced. In fact all things they have talked about are outsourced except the R&D that they want to run in the new facility (which is still not ready for R&D work). I agree that the silence of the new CEO is strange. He has not made any attempt to become a public figure for AusCann. He was supposed to be from sales & marketing to market AusCann's promised products. Again, it's strange that a company would even talk about marketing a product that has not even been produced for a trial. This is why I don't trust people who talk about a far future state of business as if it's about to happen.
With several announcements on the hard capsules and even a picture of the cover box for their future product, AusCann set the expectation that the capsules will be available for trial before the end of 2019. We are heading to end of July. Every one expects the announcement to happen before end of this year. I think this is why the share price does not test 29c.
My guess is (1) if the announcement was done with great fanfare and a detailed plan of trial showing that they actually (silently) set up a team, a partnership with hospital or university and clear timeline for trialling the product, then there would be a big pop which would fizzle out over a week or two (2) if the announcement was just a weak one with the pictures of the product and a statement about working on a plan to set up a trial, there would be a small pop and the stock would be sold off heavily within 30 minutes of the announcement. This assumes the stock still hold above 35c by the time of the announcement.
Who knows? If they do not announce anything until Sep, a lot of investors would get cold feet and the share price might head South and may test 29c. The chance for me to play this stock is getting so small. I am willing to play it for a quick pop and selling if it heads to 29c. But at this rate it seems to defy gravity until the promised announcement which could be very late. I am happy to miss out.
For stocks like this to suddenly drop 25% then pop 40% later is no surprise. It will take a steep drop of 25% in one week to tempt me. With ASX near all time high and US marks are at all time high and world economy is bad shape, something is not right. One needs to be very careful.
AC8 Price at posting:
38.5¢ Sentiment: None Disclosure: Not Held
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