Ann: Michael Rubinelli joins Mogul as CEO, page-160

Anyone buying into this one should acknowledge that they have a bunch of shares on issue and are yet to really show their hand in terms of revenue growth. Most acknowledge this point. The thing however is that you have an all star cast, from what they’ve done before you get something of a feel for just how good these guys are. In a perfect world the market would now settle on a value around where we are now and await confirmation of delivery from the new guns.

The reality however is that this is the speculative end of the market and we’re going to be priced on what might happen in the future.

They might make a cash flow positive business from existing cash reserves, they might need a few more capital injections.

They might shoot the lights out and sign up some huge partners in the coming weeks, it may take years or never happen.

They might turn this to a multi billion dollar company, they might turn your investments to dust.

The thing is to understand that right now your invested in what might happen based on the sector and those managing this company. It’s yet to cement itself as a value investment.

For me personally it’s got all the right ingredients to succeed. If it does then 10 bags, maybe 100, who really knows. If it’s going to fail then chances are you know in the next 6 months. With the risk v’s reward on offer it’s currently a very easy hold. 60-80m MC without any major progress and I’d likely be a seller. For now though happy to hold and let a few of the maybe’s be answered.

PS, keep in mind and major run in a stock brings in a bunch of hot money, they’ll be gone in a week irrespective of the company’s merits so expect some volatility and plan your strategy appropriately. Don’t let the noise impact your choices, it comes and it goes.