Tall poppy syndrome?the authors time would have been better...

First 2 Last

Share
Profile

Follow
Gerrado

7,231 Posts.

1428

16/08/21

18:02

Post #: 55330984
Share

Originally posted by cyu291: ↑

The meme-stock fever gripping US sharemarkets has reached the ASX as retail traders swarm towards popular companies on social media, message boards and budget trading apps.
The young investors who are part of this new wave prefer to conduct research on Reddit, Facebook, TikTok and Twitter, and speculate on stocks they expect to rise, without any reference to fundamentals.
The result is befuddled valuations across the market where online forums and social trading determine valuations far more than estimates of future cash flows.
The meme-stock asset class’ new frontrunner is South Australian minerals explorer turned deep-tech quantum computing hopeful Archer Materials. It climbed 21 per cent on Monday to a record $2.88 on a valuation of $655 million.
Under its chairman and significant shareholder Greg English, Archer has sold its mineral tenements to focus on developing a quantum computer chip capable of working in mobile devices at room temperature, but for now, has no product, with the potential technology in development.
Over the 12 months to June 30, Archer posted an operating cash loss of $2.3 million on zero sales. Staff costs for the year totalled $1.78 million with administration costs of $750,000.

The chairman’s salary from July 1, 2020, of $370,000 accounted for about 14 per cent of the company’s total annual cash expenses. The chairman and chief executive’s salary of $251,850 combined equalled 24 per cent of total expenditure over the year.
In other words, the tech company boasting a $655 million market value has only a handful of staff, no product, and spent just $2.6 million in operating expenses last year.
Frenetic rally
Its shares are up more than five-fold from 51¢ in August 2020 and up 26-fold from 11¢ in August 2019. The frenetic rally follows a string of positive announcements around the quantum computing chip’s development – there have been three announcements since August 10 reporting that the technology has been granted patents in South Korea, China, and the US.
One of just three directors, Alice McCleary resigned on July 29 and was listed on June 17 as owning 3.87 million shares after acquiring an additional 1.17 million via options.
A request for comment from Ms McCleary or Mr English received no response from the company. Nor was there any reply to queries on the number of full-time staff Archer currently had working for it.
It has just two board members in Mr English and Kenneth Williams, who joined less than a year ago.
The group’s crazy $655 million valuation may be a standout, but it’s not unique as meme-stock valuations mushroom across the sharemarket thanks to their popularity on meme-infused message forums such as Hotcopper.

Expand

Tall poppy syndrome?
the authors time would have been better spent reading a few annual reports and the latest company announcements.
maybe then they would have bought some shares and been in a happier place today.

AXE Price at posting: $2.67 Sentiment: Buy Disclosure: Held
19 Upvote

0 Great analysis

Reply

Top Stories

BPH

Australia’s gas crisis is here – and dying coal plants aren’t helping

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

Week 26 Wrap: Renewable gas fantasies; RBA July cut hope builds; copper's August peak?

AII

NATO’s 5% target: Why Almonty Industries’ mega mine and NASDAQ listing are a perfect fit for investors

AII

Almonty Industries shares EXPLODE! Rheinmetall, Renk, and Hensoldt left in the shadows!

There are more pages in this discussion • 288 more messages in this thread...

First 2 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

(20min delay)
Last 23.0¢		Change 0.000(0.00%)		Mkt cap ! $58.61M

Open	High	Low	Value	Volume
22.5¢	24.0¢	22.5¢	$89.25K	387.4K

Buyers (Bids)

No.	Vol.	Price($)
4	104441	23.0¢

Sellers (Offers)

Price($)	Vol.	No.
23.5¢	56023	2

View Market Depth

No.	Vol.	Price($)
4	104441	0.230
8	182195	0.225
11	234057	0.220
7	58193	0.215
8	164657	0.210

Price($)	Vol.	No.
0.235	4141	1
0.240	101099	4
0.245	7000	1
0.250	76000	3
0.255	129000	3

Last trade - 16.10pm 27/06/2025 (20 minute delay)

AXE (ASX) Chart

Tall poppy syndrome?the authors time would have been better...

Australia’s gas crisis is here – and dying coal plants aren’t helping

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

Week 26 Wrap: Renewable gas fantasies; RBA July cut hope builds; copper's August peak?

NATO’s 5% target: Why Almonty Industries’ mega mine and NASDAQ listing are a perfect fit for investors

Almonty Industries shares EXPLODE! Rheinmetall, Renk, and Hensoldt left in the shadows!

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Tall poppy syndrome?the authors time would have been better...

Top Stories

Australia’s gas crisis is here – and dying coal plants aren’t helping

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

Week 26 Wrap: Renewable gas fantasies; RBA July cut hope builds; copper's August peak?

NATO’s 5% target: Why Almonty Industries’ mega mine and NASDAQ listing are a perfect fit for investors

Almonty Industries shares EXPLODE! Rheinmetall, Renk, and Hensoldt left in the shadows!

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News