I do understand the frustration from many posters here, but this is the communication style CXZ have chosen to adopt. Connexion is not going to try to flush the ASX with fluffy announcements, purely to spike the share price.
They are focused on underlying business performance and the share price will follow in time. The share market is a mechanism for transferring wealth from the impatient to the patient. My opinion is subject to change. In investing, it is never wrong to change your mind. But at this stage, I believe Aaryn has what it takes to deliver strong performance for CXZ over the next few years.
I've had every chance to walk away (like many others have done) with an AEP relatively close to current levels. However, personally, I am happy with the company's progress and the risk/reward on offer at these levels.
I would love the opportunity to be able to load up at around 1.0c, which would be a market capitalisation of $8.8 million for an enterprise value of $6 million AUD and a PE of about 2x. To get back to a $30m EV from a $6m EV starting point would be a 4 bagger.
The more emotion the better. Fear, despondence, despair, anger: all of these emotions will lead to unfairly priced stocks on the downside. Bigger emotions = bigger bargains.
Investors need to give the company time to execute on their strategy. In time, I believe confidence in the CXZ team will return. Bringing in 2 new (minimally-paid) NEDs with complementary skills is a great start, particularly from the viewpoint of the fund managers.
Being a behavioural investor, with stocks like this, you have to look silly in the short term to look wise in the long term. I'm ok with that. By definition, one has to swim against the tide if they are investing in beaten down and trodden on stocks that they think have been unfairly valued. In the long run, stocks will always track progress in EPS.
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and crave action.
Investing is 5% intellect and 95% temperament.
T.E.P.
CXZ Price at posting:
1.5¢ Sentiment: Buy Disclosure: Held
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