Ann: CEO and Managing Director Resignation, page-49

As I alluded to above tech is now being mercilessly slaughtered because they don't make a profit. The problem here is they need to. Time is up.
Why is time up? And what is the problem? (if they don't)
Well capital markets here in Aus (unlike the US) are tiny tiny ...miniscule in comparison and even though ..yes there is a lot of capital in Big Super.. Trillions in fact....these guys are risk averse and will not invest in startups - (which is effectively what the small tech end of the ASX is)
And the thing is small tech ASX stocks are not venture capital plays (either)
So if they remain unprofitable they will go back to the ASX for more funds
And they (along with other small caps) are notorious for doing this in a dilutional fashion, using Rule 7.1 (of the ASX CR rules) which allows them to do just that.. dilute the existing shareholder base.. not only dilute (if you don't take up any rights).. but offer shares outside the shareholder base.. in large quantities year after year ...in other words NO exclusivity at all !
So why be a shareholder? (think... if you are a big fundie) ..if you can sit back and basically expect cheap shares again and again to come your way?..without taking any holding risk? Only to flip them once you have got them?
This is the biggest game in the ASX book and goes a long way IMO to explain the lack of long term support of these stocks and the relentless falls in small cap share prices.
Just MO
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