Hi Lobbster,
Certainly not a good time to sell shares in VMT and not enough sellers offering shares at these prices, coupled with uncertainty as to where the world is heading, to bother buying at the moment IMO.
Given the main market until recently has been Europe, sales have to date been the highest in the northern hemisphere Spring and Summer Quarters. Q4 normally out performs Q1 see Table 2.
With the big crash in sales in Q3 23 as Cost of Living pressure came strongly into play as Cy23 progressed it's hard to draw any conclusion about Q4 23. We will have to wait and see how the entry into the Asian market plays out. Having a strong presence in both Hemispheres will eventually lesson the effects of the seasons on sales.
It's interesting to note that the share price jumped from a low of 11c in march 2020 and peaked at 65c following Q2 2020 sales of 6,389 ( 8292 in 2023) and H1 revenues of $27.2m in 2020 . ($45.6m in 2023)
N.B. Average revenue per sale jumped from $2,588 in H1 2020 to $2,907 in 2023 . Worth noting also that the stash has been released in Q4 2023 and the bottom of the range will be most affected by COL pressure.
The current share price in comparison to the sales numbers and revenues seems like a mis-match to me.
We are in with a strong chance that management will continue to control costs and maintain margins. I'm hoping that produces cash flow sufficient to avoid the need to raise further capital.
If management didn't have a strong pipeline of growth initiatives that require cap ex, the downturn in sales would have easily been digested without need for a Capex . In the circumstances it's comforting to now the balance sheet in good shape to fund the growth initiatives with a decent buffer following the oversubscription of short fall shares if sales continue to decline during this year.
