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18/01/24
14:49
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Originally posted by Tarvold:
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There are too many ASX companies that list with the notion of 'proof of concept' on very low revenues & with good 'tales' from the CEO. Unfortunately micro caps aren't legally able to give forecasts for revenue / earnings & are only required to detail (& monitor) how the funds raised will be/are used. Often that is no more detailed than 'marketing' or 'working capital'. So personally I steer clear of anything without a proven mngt track record of delivering on what they say in previous quarterlies or reports. Nothing worse than a CEO who just lists endless 'opportunities' each quarter & then never revisits them again. Having actually worked on stock exchange releases I know it's more about what's not said than actually is most of the time. If something is omitted from a release, assume it's bad until proven otherwise. So I look for companies that are not only consistently growing but also either (EBITDA) profitable or will be profitable in the next 12 months. For that reason i don't do resources or software companies & also avoid anything to do with retail. I stick with what I know which is usually financial services. As Buffet says never invest in something ypu don't understand.
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Really interesting Post I can say. I could answer Any Pages to this. What I can say: The Aussie Exchanges are "COWBOY" Trade Places, I can say to my Experience. A lot, lot, lot of "Story/Vision selling, promotional and Money collecting" is happening there, but DELIVERING on the Projects, often, not sooooo much. So, this is a VERY tricky Environment in my Opinion. A lot, lot of investors "already died" there. So be CAREFUL, People which want act there.....