I recall Dirk more than once recently referring to the substantial savings in raw material costs that have become available as a result of economies of scale. I believe savings of 60-70% were stated. This was forwarded as the primary reason for the sudden lowering of COGS and consequent move to high margins.
There is a secondary issue relating this to the business model. The standard model for the industry is that following market research product development progresses in-house at company (shareholder) expense prior to manufacture and sale. In Alexium’s case development has been undertaken in consort with clients through tailored trials located at their facilities. Those clients have met a significant part of the trialing costs, at least for the raw materials involved. Whilst this resulted in negative gross margins, it is still preferable to the standard alternative.
Once developed those products have become a ‘platform’ that doesn’t require further development. For this reason I don’t believe the earlier negative margin activities should be viewed as mismanagement. Rather they effected a means to subsidise the product development phase.
- Forums
- ASX - By Stock
- AJX
- AJX Fundamentals thread
AJX Fundamentals thread, page-28
-
- There are more pages in this discussion • 77 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add AJX (ASX) to my watchlist
(20min delay)
|
|||||
Last
1.3¢ |
Change
0.000(0.00%) |
Mkt cap ! $20.46M |
Open | High | Low | Value | Volume |
1.4¢ | 1.4¢ | 1.3¢ | $2.2K | 157.6K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 42000 | 1.2¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.5¢ | 906200 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 42000 | 0.012 |
3 | 4058332 | 0.010 |
5 | 2072715 | 0.009 |
3 | 1186222 | 0.008 |
2 | 240000 | 0.007 |
Price($) | Vol. | No. |
---|---|---|
0.015 | 906200 | 4 |
0.016 | 429958 | 1 |
0.017 | 321118 | 2 |
0.018 | 115942 | 2 |
0.019 | 12500 | 1 |
Last trade - 14.20pm 07/10/2024 (20 minute delay) ? |
Featured News
AJX (ASX) Chart |