I am surprised at the negativity regarding the stock and the current valuation. The "we have a furnace problem, but we will get this sorted by August" highlighted directly in the Shareholder Update in July, has been resolved. Congratulations to CFU.
Orders are meaningless unless they can be fulfilled. They have held back on asking for the remainder of the funds from the incomplete capital raising last year. Now CFU are ready to deploy these funds into scaling up stock levels and production. Capital raising is not popular at any time especially today, but they have given holders a fair opportunity to support the company. Far worse CR scenarios are playing out on the ASX for small shareholders, as I speak.
Page 62 from the Shareholder Update in July gives an idea of the cost savings when volume orders increase into the future. There must be a considerable reduction in fixed costs per unit, when increasing production from 300 to 1500 units per annum. I would be interested to find out, just what effect the increased production, has on the unit cost. Is anyone aware of the number of completed Bluegen units they want to keep on hand for immediate delivery?
CFU Price at posting:
5.2¢ Sentiment: LT Buy Disclosure: Held
