The issue here is the fact the company has not released any meaningful news for about 6 months! I bought in pre SPP and also in the SPP on the back of expected large revenue deals (i.e. $1m+) and I took comfort from the fact that Funds/Institutions took stock at 15 as well, but as far as I’m concerned $25k contracts here and $50k there doesn’t cut it. Anyway I am down on my buy price at the moment and as much as I like the technology I haven’t topped up on the way down so why would I expect the funds/Instos to top on the way down? The fact is Institutions don’t operate like that, they only buy more when they are convinced the story is progressing and obviously the story hasn’t progressed enough for them to buy more or support the share price. The fact the broker to the placement isn’t propping the stock up at 15 or 14 cents is neither here nor there because no broker would prop this stock up at those levels on the back of no decent announcements for 6 months and if they were stupid enough to do so I would have been selling some of my shares to them at 15 or 14 and looking to re-enter when I felt more convinced about the story (I am seriously considering it now at these bargain prices!). And that my friends is what we have now, a lack of conviction in the story as the announcements regarding sales have not been forthcoming and the announcement they have put out are really pointless and probably have turned off some investors watching the stock. Combine this with 30 june tax selling and you end up with a depressed share price. The only thing that will change it is a significant revenue deal, not rats and mice stuff, something decent that shows proper demand for their products, and when (not if) they do announce something like that watch everyone flock back as greed overtakes fear.
AJX Price at posting:
9.7¢ Sentiment: Buy Disclosure: Held
