Oh, boy. I don’t know why I’m even bothering responding, but here we go...
I started watching your recommended video out of bemusement more than anything. ”Why to avoid BRN like the plague” That title sure is an eye-catcher.
As far as the “penny stocks are for dummies” red flag list goes, I stopped watching after this dude identified an RTO/ Reverse Merger as a major red flag at the top of his list.
As someone who has been invested in WBT since Radar Iron days and BRN for several years, albeit not Azeana days, my bemusement and patience ran out when this dude started wasting my time talking about the activities of Azeana including a map of their bauxite tenements, like anyone gives af.
Ain’t nobody got time for that! Especially when an in depth analysis of the prior activities of the RTO company bears absolutely ZERO relevance to WHY a private company would choose to list on the ASX via an RTO versus an IPO. That’s actually a really simple, straightforward explanation that would put your mind at ease that no map of bauxite tenements is ever going to explain.
But, please, let me be the Miss Jane who turns that tenement map upside down so Mr. Squiggle can draw us an alternate view. (And only kids from the 70s will understand that reference - if you routinely use terminology like “meme stonks” then you should probably stop reading now and go back to talking about your wife’s boyfriend’s investment advice on Reddit because there’s nothing of interest for you hereafter.)
Someone, ANYONE, who had the patience to continue watching/listening (and I simply could not because I was getting dizzy from all the eye-rolls that Mr. Dullard Monotone was provoking in me) feel free to correct me if he did then go on to EXPLAIN exactly WHY an RTO is such a sensible, economical and time and energy management preferable route to convert a private company to a public company versus an IPO float.
Did he? I bet he didn’t, and if he did, then I’m sure it would have been glossed over in pursuit of the broader narrative of downramping BRN for whatever reason he is choosing to do so via this video that Shareman has posted to warn us all of our BRN folly. *more eyerolls*
Anyhoo, I digress. If you, as an investor on the ASX, choose to view RTOs as a “red flag” as this “advisor” does, then please consider that you might want to reconsider your investment strategies and look at real estate, ETFs or term derposits because, in heeding this advice, you may be throwing the proverbial baby out with the bathwater and should really take some time to acquaint yourself with the myriad of counter-argument reasons as to why a reverse merger is not a “red flag”, but rather an excellent and very sensible method of converting a private company to a public listing and bypassing all sorts of issues involved in the lengthy, expensive and complex process of birthing via an IPO float.
I can’t remember what the name of the logical fallacy it is that this guy’s argument is relying on, but it just is.
As a case in point, I would imagine Twiggy would be a seasoned investor who would not entrust his family company’s funds to just *any* old thing. Well, Twiggy clearly hasn’t heeded this guy’s advice! Which is rather fortunate for Andrew Forrest’s family who have doubled their money by not taking this guy’s advice as to the “red flag” telltale portent of doom that he claims a reverse merger listed company to be.
Before you, also, consider taking his advice, please take a quick look at Swoop Holdings. Andrew Forrest’s private family investment arm, Tattarang, owns a significant percentage of Swoop.
Swoop is a disruptive telco company (hey…wasn’t “disruptive tech” also another red flag in that guy’s list, yeah?) is a massive red flag company *apparently* due to it being birthed from a back door listing via Stemify Ltd.
Tattarang’s returns on this investment bet to differ!
Please, be like Twiggy, don’t listen to any idiot on the internet (me included) because at the end of the day everyone has their own agenda. I stopped listening to this guy after my own, albeit limited, understanding of the most basic concept of why a reverse merger is also a sign of a sensible approach to taking a private company into the public sphere to attract shareholder investment and funding for growth.
Growth that will hopefully one day prove to be exponential, but could not occur without the capital injection opportunities that a public listing provides.
Enough said. Sometimes it just is what it is - ”DYOR”.
(20min delay)