First of all lets look at the bigger picture, the whole market is getting an absolute caning, no matter how good a story, usually the riskier the stock the greater the falls. Secondly this market has been in a downtrend for a few weeks and sentiment is definitely negative with a lot of fear out there so buyers are sitting on the sidelines waiting for a more stable market (doesn't look like it's here yet). Thirdly, NWZ is a cash hungry, low revenue business as its still very early in its life. This is very normal and you got to understand that with stories like these there will be load of cash burn and capital raisings. Fourthly raising cash is all about finding support from shareholders and institutions and unfortunately investing in risky stories requires steep discounts on a capital raise as investors want some kind of margin of error/safety from price at the time of raising (in this case the discount was large but then shit hit the fan so prices fell but a big margin). Fortunately they have raised $5M. Could've been worse and not raised anything and fallen into a funding shortage then you could've seen a complete wipeout. So all in all NWZ is very promising company but its super high risk and in the current market that is amplified by a large factor. U gotta have a long term outlook and patience and also be prepared for lots of CR's and possible failure. Saying that there are many companies in a similar position to NWZ and finding that one that will succeed is not easy.
NWZ Price at posting:
4.5¢ Sentiment: None Disclosure: Not Held
