1PG Chart, page-133

There's support at 25c. Has tested it a couple of times now. People who only look at poor cash flow will miss out on this one.

The product is a flop? The company signed $4.9m in contracts in 2 quarters alone. These clients trialled the product first then signed big contracts. Retention rate is 90%. It's hardly a sign of a dud product. 20% of those contracts will be recognised as revenue in this quarter and recognised as cash in the next quarter. The company is going to make this as clear as mud in the upcoming report.

My 1 year price target for this is $1 and $15m revenue (break even point). I can think of at least half a dozen IT companies on the ASX with market cap >$100m and a couple with >$200m that have no or very little cash flow and they won't have any cash flow for at least the next 6-12 months. Their fate will be very similar to this - investors lose patience and throw in the towel. This one has gone from one extreme to the other - from being overvalued to undervalued.