General Discussion, page-121

Hi @Dubbo66, Hope all has been well for you and you have had success since the SE1 debacle. I always appreciated your input there and high level of integrity. Not much happens on these threads, RVS definitely well under the radar. I sold out when it became readily apparent that Rebecca’s market guidance was grossly inaccurate and the big end of town was selling on a daily basis to reduce risk, irrespective of SP.

I have started building a modest holding at these bargain basement SP levels, despite the obvious risk that the house of cards could still collapse. As you pointed out macro trends are compelling, costs are being managed better, Scott seems to have started well and impressed on the occasions I have heard him speak, importantly we have been told supplier issues have been resolved ( by sourcing a new key component supplier ) and as a result tools are being shipped again, and yes, the CHIPS act should not only inject funds later in the year, but most importantly the SiC tools offer a real benefit to the customer and will be in demand ( with subsidised costs to US based foundries buying our tools while maintaining RVS margins ). Throughput has been improved by moving as much of the build process as is practical to co-manufacturers. The new revenue guidance for FY22 is around USD$15M , not bad for a business with a A$12.5M MC.

On your question around First Hand … I know not ! I assume that with the poor performance of the fund and general market malaise that First Hand have had a high level of withdrawals to cover, requiring selling across their portfolio. The promissory note shows that cash is still tight for Revasum, but Kevin and First Hand still fundamentally believe in the company and it’s future (IMO). He has a lot riding on this turnaround, first & foremost his reputation, and with it the ability to attract future investors to his fund.

Having said all of this, I await the quarterly to validate things have in fact turned around before dipping more than my toe in the water. If Scott and the team have righted the ship, I believe anything under .30c is good value.

All IMO
DYOR