For pre IPO sellers 10c would be a bonanza. Probably they would have invested 1c. It is the same bunch along with float broker shouted to the world this is 20c and sold it. They could keep selling even lower and create retail selling at loss.
Looking at bright side -
Apparently it was meant for 40c float but was delayed and lowered due to change in market condition. Thank God for that.
Unique product. Good revenue. People keep comparing to coffee shop etc. If coffee shop turns out a mil in turnover they would borrowed about 1/2 a mil at credit card rates from leasing companies such as Silverchef. That is where whole problem starts. Then comes rent, goods input, wages, utilities etc etc. Here they have clearly stated about 20% of revenue to be the cost base. Marketing to be on top and it can vary.
Scaling is very easy and with scaling economies of operation improve.
SP at these prices is a certainly attractive. No rush. Buy every dip. Small bits and incremental. Be prepared to prolonged, dragged out game.
Every jump sell some, hold more. Dips again, buy again.
Some day it will all change. Short to medium term they have upper hand. Long term fundamentals play out. Chances of company performing well or very well is becoming clearer.
Add to My Watchlist
What is My Watchlist?
