The question of why 4DS is not out blowing it's own trumpet or at least Jim/Guido playing a tune has been consuming my locked down brain.
The simple answer is share price is "irrelevant" to the objective of either Jim or Guido as long as 4DS can continue raising capital each year to let Guido keep tinkering (7 years & counting) & that the share price has no relationship to what a WD etc is willing to pay.
Public promotion only to appease shareholders is of no value to either. Jim's last tour of Australia in Feb 2018 was followed by a 50% fall in share price over the following 5 months. I wish I could have joined the session at Sarah Constructions Offices in Adelaide
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(2018 Australia Wide Briefing)4DS Directors' Game plan :Upon reflection here is what I believe has always been the 4DS Directors Game plan : Complete Control, personal de-risking, sell company
1) Complete control : Listing on the ASX has allowed the 4 directors onboard since 2015 Fitzroy Resources /4DS merger to maintain total control with less than 10% of shares. Listing & capital raisings have not resulted in new influential & potentially difficult shareholders, rather a 7 fold increase in number of shareholders (619 Dec 2015 vs 4751 June 2020).
2) Personal de-risking : directors have a consistent preference for not maintaining their own % shareholding (aka dilution) - ie Jim has gone from owning 5.32% to 4.03%, David has more $$ invested in IXC & Guido chose not to exercise options. I'm convinced $$$ is a secondary motivation for Guido - he is the only one who has invested career years..
3) Sell Company : all 4 directors have been in place since 2015 & have not sold any shares & made clear what the objective is. That is to sell company/technology.
Winning from 4DS Directors' Game plan : key takeaways Some lessons to ponder :
1) You would be mad to expect directors to actively promote 4DS purely to increase share price. They don't need to care!
2) Buy 4DS if you are riding it to the end otherwise you are on your own. Since Jan 2019 share price has declined despite significant steps towards goal. Directors have not changed tack in public promotions.
3) Spread your risk no matter who confident your are on 4DS - Actions/decisions by the people who know the most (aka directors) have seen them dilute their % shareholding of 4DS over time and not double down...
Happy weekend...
