YOW - Nice push up today in SP, page-7

Stiffy in order
1. Company moving to Canada and Australia without manufacturing is crazy. US equates to half of global consumption and they have had 3 years and still cant get it right. The US once (if it ever does) should be used to fund the expansion from FCF but poor delivery has forced massive capital raising to fill gap. Moreso, if the rest of world equates to the other half of global consumption, the other half is more fragmented, more dislocated, more expensive to execute. If they cant execute a simple one plant facility in one jurisdication, how do you expect them to run a multi national operation?

2. "Continued continuous quarter on quarter Growth" This statement is simply wrong. Sales in March quarter this year were 3.99m. Sales in June Quarter were 3.00m. This represents a decline of 25%. Not sure what else to say here? I am sure you will point to the rebound but even if you take out the noise and look at the yearly sales numbers they are pathetic. Starting Sales in March quarter 3.99m. December Quarter 4.78m. Yearly Growth of 19.7%. So you have a compeny growing at 20% and losing money. On the other hand while sales have grown 20%, staff and Admin costs were 255k in December 15 compared to 1.85m in December 16 quarter which is a 720% increase (this number is overstated by a corporate cost but still it is a massive joke)

3. Lastly, if you are reading analysts report like gospel that is a problem. Lets take Cannacord reports for instance. In June 15 their Price Target was 1.63 with the share price at 90c. Nearly a year later in May, when the share price had dropped to 60c and rebounded to 80c (on the same day as the capital raise that they did) they released a report increasing their target to 1.68. Why? In Oct they dropped their target to 1.48 and the share price was 65c. The share price is now 55c. So when you ask me what i think of someone who clearly doesn't understand the company and whose targets are made up of incorrect inputs over an 18 month period, i think you are mad to take any notice of it.

4. The company is no where near being break even. If it were, they would guide to it. Costs are only starting to ramp up.

Hope this helps