I liked the reference by Mr Carosa to Q&A revenue of about $25 million, which strikes me as something like a good base for the business. Gross margins arising from this obviously allow some research and development of other business streams. And good luck to them.
I’m no techy but what struck me overall about the half hour investors phone hook up was the abstract nature of the business areas in which CM8 is operating.
Carosa and deJong seem to be operating with a considerable depth of knowledge already in what looks like these frontier business areas.
In the resources industry you can get a pretty good idea if you’ve hit a motherlode and if therefore you’ve got a company maker to develop.
I wonder in the business areas CM8 operates in if there are any motherlodes and how you would know if you hit one.
Or is it that despite the potentially “exciting” nature of social media you’re essentially scratching out a living in a high cost, thin margin business area.
Carosa’s use of a “blue ocean” metaphor to describe opportunities suggests a greater potential to sink than take off.
Thoughts?
Oh dear, 4.9 cents close today, down 80% from last year’s high. Yet will post underlying profit.
CM8 Price at posting:
4.9¢ Sentiment: Hold Disclosure: Held
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(20min delay)