I am sure when @ywtoh wrote the piece, it must be at the most painful time. At 20c for a long term holder, since EMC days, I am in the same boat. “Forgot to take into account valuation” if I read it correctly, it’s a reflection on hindsight.
I bought I to EMC based on a believe that MABR is an innovation that will be easily adopted anywhere in the world as it is effective, low capex and low opex and it will take the world by storm. At that point, what we had was a demonstration plant and a fully operating system at a golf course in Israel. What valuations can I put? The range is from zero to blue sky. The story was excellent, the following was increasingly good. I was just naive to not consider the red tapes involved for the industry to adopt an innovation.
At the merger and formation of FLC, the basis was Ron’s and Richard’s cost. It was hard to push any other types of valuations with a lost making entity.
Fast forward to our first actual meaningful inroad to China, iTEST. Woohoo! But overhead was still $45m a year.... burning, burning... but there will be other deals coming soon. Kaitian followed and we see traction in the business model. Overheads has been now reduced to under $30m a year, Woohoo! What valuations can we put? Still based on a lot of assumptions.
Last Friday’s announcement on cash flow positive for 2Q!...... I think we can start to see some valuations based on a sustainable earning model.
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