Thoughts for Tuesday the 10th, page-127

People will potentially write off anyone who happened to sell sub 4 cents as sour grapes, but interestingly.. nothing has changed then till now fundamentally. No one is more right, or more wrong - until the company does or announces something.

Today again, the company is valued at $40 million+ and as you say burns lots of cash, whether its $30k a day or $3k day... one thing we know is there is more money going out than in.

Even most rusted on supporters acknowledge they are going to have a cash-flow crunch soon, so a placement, SPP or some deal to inject cash will be needed. So hypothetically in the next 3 months;

2x CORONA cloud contracts totalling $300k
Keeps the share price buoyant as people stay excited.
Capital raising at 4 cents, 200 million shares fund them to the tune of another 8 million to push them into a CF+ position. Marketing is pushed up, we see 10 million downloads and $4 million revenue this year (what the margin is.. who knows).

This would leave the capital structure:

• 870 million currently quoted
• 150 million more bonus shares triggered
• 200 million CR shares
• 1.22 billion shares

Then at 4 cents your market cap is still $50 million.. and things haven't changed much. The company has a bit more cash (whatever is left after the advertising spend and cost to provide services) and holders are diluted ~25% depending on how a CR is done.

This is potentially an optimistic scenario.. in that revenue increases and they can pull of a big raising at close to 4 cents.


Whatever the case, the next 3 days will be much easier to examine and debate. Broker data will be available tomorrow.. transaction detail about who put which orders last Friday and we can see who was doing the buying and selling.

My bet.. FPMarket, CommSec and Etrade will be the big volume. aka: no accumulation on a significant level, just a few big boys playing with the minnows. Exciting times