"Just focus on the project, the share price and macro."
Now, let's us do some real talking. IMHO,
- Due to the Macro environment and the industry readiness, I don't think the VR/Metaverse industry will take off anytime soon in both the consumer and commercial front, simply due to the cost and software compability.
- As far as I am aware, VR1 is only providing software solution in this niche industry. For medium and big companies, they probably have their own in-house solution already or hire professional firm to custom build their solution. So the only opportunity left will be just some random companies that wanted to beta test the software by paying once off agreed price in which case, it rarely turned into continuous/long term business.
- In the VR space, or should I say the tech industry, you will need constant investment in R & D and patents. Per the last half yearly report released on 28 Feb 23, they have put $8mil into term deposit. This is a red flag to me because it seems to me that R & D has slowed down, company thinks that their product is matured and doesn't required improvement. Most importantly, it is also contradict with the previous company announcement 12 months plus ago, they will be more agressive in M & A and that is the whole point of the previous cap raise.
- Everyone probably will agree with me that this company is a speculative company. But please allow me to add one more statement on top, this is a speculative company that hits it's speculation quota. This can be seen from, the company announcement trying very single slight/distant opportunity to link their company product with the trending product or news such as Nasa cooperation (which eventually got picked up by investor and they have to remove), Cisco Webex, Metaverse involvement (which got the share price to 20cents), just recently ChatGPT and Apple 2023 WWDC potential VR glass product (this is from Kiril, a potential significant sharegolder that recently had a 4 hours closed door meeting with the management)
- Now take a stepback and look at the product portfolio of VR1 and the company they have tried to link up. Potentials or just hype? 1) ChatGPT - At this stage, the best they can do is build an avatar to integrate the Chatgpt? Why? Because ChatGPT is just a contextual Chatbot which is widely available for quite a reasonable price. Why would I sign up with VR1 to use Chatgpt. To conclude, VR1 quoting Chatgpt in company announcement without providing concrete potentials/solution, it just put the words out there to let people joining dots. To me, the dots is going no where.
2) Cisco Webex - Per other well-liked posters here, Cisco Webex is loving VR1 so much and could potentially takeover the company. IMO, this is highly unlikely. From my understanding, VR1 solution is sort of like a plugin for Cisco Webex. I can tell you from experience plug-in/add on for software has profit margin as thin as butter spread.
3) Apple VR glass - this one has not much to say anyway. Apple has been well-known for their closed ecosystem for a long long time now. Your only opportunity to penetrate this market is to develop an app or a web-based app that utilised Apple VR glass from ground up. Plus, the API and devkit won't be available until WWDC. The development process could take months/years, and you will have to pray for the Apple VR Glass to become mature and well accepted, this is going to take years as well. Just like Apple Maps and Siri, noone actually fully using them these days.
- Maybe this is just me, I am always super cautious about micro cap ASX-listed company where central management and business not based in Australia. A quick google search, I can already find some legit local competitors with lots of local partners such as https://7dx.co/about/
Feel free to discuss the points that I have raised.
To conclude, I would be very cautious if I were to put money into this company
DYOR, this is not financial advice and purely just my personal opinion.
(20min delay)