AJX Fundamentals thread v2

(I'd like to see if we can get some constructive discussions going. I know HC tends to be a place where bulls and bears fight to death often focusing more on each other than on the Stock itself, but I'll give it another go...)

On the anniversary thread krusty mentions the next 4c might be terrible, I don't think so. For starters, they haven't been releasing announcements but from EGM and other commentary they have said we are still gaining customers and growing. Investor relations keeps saying, "If something in regards to sales increasing had changed we would have had to inform the market".

I've been thinking about the 4C (next quarterly report), and we have to give them some credit, last quarter saw an increase in Cash receipts of 26% (quarter on quarter), even with the margin pressure and all. Of course $4.2m is way less than the market was expecting which explains the shareprice, but I fully expect the figure to keep growing because:
-They forecasted a 15% increase in Product Manufacturing costs this quarter (they are usually spot on with these forecasts)
-Inventory was up 3% last quarter (after being up 15% the previous quarter)
-Aussie Dollar has been significantly lower this quarter compared to the last
AUD/USD


-Note from the EGM: "Alexium originally said that Pegasus would be a $10 million opportunity – we are absolutely headed for that number. The ramp-up takes time but we have made phenomenal progress and sales are ramping up quickly. For the remainder of the year, apart from the new bedding lines that are due to go live in July, Pegasus will be a large contributor in Alexium’s top and bottom line growth."

Now, comparing where we are to where we were last year:

Remember that bedding is seasonal, and bedding is the biggest contributor to revenue at the moment (since eliminating low/negative margin business last year).

Bottom Line is, I believe the next 2 quarters will continue to bring bottom line improvements, and hopefully by then one of those big cornerstone contracts will have landed or at least some solid progress.