There’s truth and opinion, and sometimes lines between them...

There’s truth and opinion, and sometimes lines between them become blurred.

I’ve been reading your recent posts and it’s clear that you are unhappy with the SP, and believe me… you’re not alone.

It’s important to understand though that a companies value isn’t always a reflection of its performance, and sometimes the two can be very misaligned. The ASX clearly identifies revenue as the main performance indicator, why wouldn’t it? It’s infrastructure was built from the spoils of the resource sector. But we’re entering a new dawn, and tech companies have very different value mechanisms than mining or oil and gas companies do.

Often development cycles can be prolonged, and a current cycle needs to complete before a new cycle commences. Let me put it another way; if you were to release a product, your competitors would likely release something equivalent to stay current. Let’s say it cost $100m to design, develop, and produce - you’d want to see $200m in sales before releasing its replacement. If you only saw $80m, you’d be running at a loss. That’s not to say that you wouldn’t be planning your next release, of course you would as you’d have no business once this current product cycle was complete. You just need to maximise your return on the current offering first. As would your competitors with their respective products.

I believe this is what we are currently seeing. Commercial interest aplenty, but no revenue yet. Development cycles take time, R&D takes time, testing takes time, and scaling takes time. Akida was only commercially a couple of years ago, so it would be unrealistic to expect products be ready to go within he first XXX period.

This interest will likely turn into revenue, and I think when it does it will come thick and fast.

This of course doesn’t stop the big boys having their fun in the meantime though. They understand the commercial landscape, and likely know how long they have to play games before the accumulation starts and the narrative changes.

It’s just a game.