Hey all,
I just thought I'd post across the below thread from the
www.computeraudiophiles.com site...a poster there had claimed that AKP was a possible pump and dump, and the response from WiredforSound pretty much sums up my view quite comprehensively.
Originally Posted by
RealAudio
Sound like a pink sheet pump and dump in action. You should read their balance sheet, its a joke.
Response by
WiredforSound
No offence, but if you're talking about pump and dump, you should know that a critical ingredient for a pump and dump is high volume; with an average of just 10,000 shares traded per day representing 0.04% of shares in issue, this ain't no "chop stock". Furthermore, you'll see sweet FA online chatter about the company on stock forums....another requisite for a pump and dump. In my view, Management actually stopped caring about attracting new shareholders some time ago...it's really irrelevant to them now. All stock is tightly held and they have the cash and backers they need to get this thing over the line.
In terms of the balance sheet, I think it's absolutely fine considering where they sit on the path to monetisation. Anyhow, at $2.0m in the bank they have enough cash for the best part of a year without raising further funds, as:
1. R&D spend is sharply reducing ($1.1M last Qtr, 0.6M this Qtr), which also suggests a wind down in testing and evaluation (would have expected to see the opposite if they were having issues); and
2. Employees are paid well below market rates and don't care as they're sitting on significant shareholdings.
Worst case scenario, even if more funding was needed, they have:
1. a commercial property that's surplus to requirements that they can flog and/or borrow against (two-odd million there); and
2. a serious raft of sophisticated investors on board with more information than any of us are privy to, that would have no problems dipping into their pockets if needed.
3. the backing of Sony Corp. These guys have picked up the lion's share of development costs since 2011 so it's fair to say they're somewhat pot committed.
I have read a few posts on this forum that question how this digital speaker chip can do what the company says it can. If this was all a giant lie, don't you think the R&D guys at Sony and ICSense would have been able to see that within their first 24hrs of due diligence? They would have severed ties and run a mile a long time ago. The guys inside these organisations are likely to be better credentialed than anyone of this forum (although I could be wrong there) AND they have a massive advantage in terms of the information they're privy to.
(20min delay)