Ann: Appendix 4C - quarterly, page-26

I've come in and out too. Don't often let emotional bias hold me back. If I have a win and the stock looks overvalued or a loser I cut gains/losses/whatever and move on. At one point I had 7-8m shares in this and have about 1m shares now so like you, I held for ages with the view that a large contract would land, it didn't, in the 2nd half of last year I got that volume in the 5-7c range to completely exit. I re-entered after the result of the low receipts but the ACV growth was decent.

The thing I like about 3DP is that it is pretty black & white when it comes to results. There won't be a random material agreement at the end of each quarter - when/if it comes, it'll be announced separately. You essentially know the result before it comes out. This quarter we had poor sales conversion - ACV growth was lacklustre. When you invest in micro-caps you are essentially paying for the growth not for the cashflows so it's basic math that on this runway, 3DP won't even get to $5m ACV in the next year. So there is a strong case to dump and move on. You could buy NEA which is on a similar P/ACV even after this surge today.

BUT - given the small overheads and low cost operating model of 3DP - theoretically, we could just grow ACV even slightly for 2-3 more quarters and have FCFE? NEA are only getting there now after chopping salaries and making some employees redundant. My personal opinion is that it is worthwhile holding at these levels. If the stock doubled on no news tomorrow to 6c, I'd sell to people buying on emotion. I checked the register on my terminal and the Olsen's have decent skin in the game to make this work.