EDE 0.00% 0.2¢ eden innovations ltd

Opinion From Rolling, page-83

  1. 9,951 Posts.
    lightbulb Created with Sketch. 3715

    Putting aside your blatant attempt to bait Zonnald, I will give you my feedback to your question.

    Companies like EDE, who are in the early stages of their development, and who often have associated liquidity problems, are always very vulnerable to external shocks.

    Fundamentally, EDE has a great product, but, as is often the case with disruptive or brand new technologies, commercial acceptance often takes years before substantial and long lasting success is achieved (refer to the Apple story). Therefore, from a stock analysts point of view, EDE has weak fundamentals due to their lack of sales and thus their lack of cash flow.

    Stock analysts are only interested in a company's earnings so that they can establish a "P/E" ratio, which in turn is the basis for their SP calculations. Until EDE can demonstrate significant earnings, their SP will continue to remain weak. The question here is how long it will take EDE to demonstrate significant earnings.

    The Corona Virus situation has brought about a GFC 2.0. This is an external shock that has completely derailed the stock market. Due to EDE's aforementioned vulnerability to these types of external shocks, this has triggered a sharp correction in EDE's SP. Having said this, the SP's of just about every other company in the world, have already undergone similar corrections. The only difference between say EDE & FMG, is the extent of the damage or sell-off, where small companies like EDE will mostly be hit far harder than the so-called blue chips.

    This current global stock market sell off is entirely due to the huge amounts of cheap money that the Central Banks (particularly the US Fed) made available to the financial markets since the GFC 1.0, which for the most part was used for speculative activity. This drove asset prices to unsustainable values that didn't reflect the underlying fundamentals. The Corona Virus was simply the catalyst that burst this speculative bubble.

    In EDE's case they have a great product, but no cash and low sales. IMVHO they are thus ripe for a takeover. If this does happen, this should give me a very good return on my investment.

    In TAS's case, they have their holding in EDE and a very solid JV with FMG to further explore the potentially huge Vulcan prospect. Here I doubt that FMG will allow TAS to fail. Here again, once the dust settles, I expect a very good return on my investment.

    Whether small companies like EDE and TAS actually survive this current GFC 2.0 remains to be seen. I remain optimistic that within a few months. daily life, as well as the stock market, will return their old ways. For these reasons, I have been recently buying stock in distressed small companies like EDE and FNT, as well as blue chips like Lufthansa and Daimler.

    Please remember that forum members here are intelligent adults who are well aware of the current difficulties facing EDE and TAS. I strongly doubt that they need reminding by you of how precarious their respective positions are. And they most certainly don't need to have salt rubbed into their wounds, as the value of their stock portfolio's dramatically decreases.


    Last edited by MarkyBoy49: 24/03/20
 
watchlist Created with Sketch. Add EDE (ASX) to my watchlist
(20min delay)
Last
0.2¢
Change
0.000(0.00%)
Mkt cap ! $7.427M
Open High Low Value Volume
0.2¢ 0.2¢ 0.2¢ $101 50.28K

Buyers (Bids)

No. Vol. Price($)
79 218134783 0.1¢
 

Sellers (Offers)

Price($) Vol. No.
0.2¢ 9849513 11
View Market Depth
Last trade - 12.41pm 18/07/2024 (20 minute delay) ?
EDE (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.