I'm happy with where the company is headed also. However I can understand that many are not happy with the, to puut it euphemistically, 'over-enthusiastic' forecasting. CFN in mid 2015, then mid 2016, now 2017. Revenue was barely half what was forecast yet again. Remember everyone saying that there is no way they would still claim to be on target so close to year end? Turns out they weren't. Now we are hearing that margins are going to be 40% which sounds great! Lots of posters here are doing their valuations based on this coming up with good numbers that justify that the SP is undervalued. However does the market believe this? Why would it given the history? Even the 14 day weather forecast has a better hit rate.
So I'm happy with the company because I don't listen to their forecasts anymore, I don't give a damn what they say because its just not trustworthy (sorry but you reap what you sow). I'm just watching the improving fundamentals now, quarter on quarter, based on consistent growing revenues and/or cash receipts. As such the 4c was very good news to me. But this is the way I see the SP moving:
Pre results:
Generous company forecast --> Greater market valuations --> SP moves up to valuation levels -->
Post results:
Results show forecast false --> Lower market valuations --> SP moves back down to realistic valuation level.
AJX Price at posting:
63.5¢ Sentiment: None Disclosure: Held
