Ann: Appendix 4C - quarterly, page-29

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MCPathwaycom

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18/07/19

07:18

Post #: 39572392
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Originally posted by Foxinvestor: ↑

If one applied traditional metrics such as current revenue, let’s face it, the entire sector is grossly overvalued as the chart McPathway kindly posted illustrates.

But we are talking about an industry still in its infancy, and very speculative, and I doubt most of the current players will be around in a couple of years. These companies do not run banks, utilities, supermarkets etc. so personally, when I consider investing in a company in such an industry, I consider revenue growth and potential for future revenue to be far more important than current revenue.

There are are many more, but briefly why in my personal opinion EOF is ‘best in this field’, more likely to be playing the game long term and significantly increase in value long term are:-

1. Hemp Black - I am convinced that CBD etc. and to a lesser degree hemp food are genuine growth businesses, but believe this will end up being overtaken by hemp textiles etc (this part of EOF is still in the pre commercial phase)...

2. Owning and controlling virtually all the value chain - Good in any type of business for obvious reasons.

3. Partnership with Thomas Jefferson Uni (TJU) who are also a shareholder - Lots of valuable R&D especially as this will speed up development of Hemp Black.

4. Financial - To determine sustainability, I look at revenue in the context of cost of production and to a lesser degree staff and admin/management cost. EOF easily has revenue more than cost of production (a company where this is the other way around is most likely either selling product for less than it costs to produce which is very unsustainable or building up inventories which is a red flag that at the very least warrants further investigation as to why and whether this will be short term.

5. Shareholders - Aside from TJU. These include Lambert, Wang (both also active) Vicars and Cuffe.... a tonne of business experience and let’s face it some of the deepest pockets in Australia.... also add John Eales, interesting fact - his nickname is ‘nobody’ because nobody’s perfect....

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Agree, exactly like dotcom era, most of the current companies will not make it

BUT there will be some like Amazon, Google etc that do and they will end up being a big deal

I think factors that matter are

1) management
2) science - I think MC > recreational
3) branding

EOF Price at posting: $2.75 Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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(20min delay)
Last 3.6¢		Change 0.002(5.88%)		Mkt cap ! $13.63M

Open	High	Low	Value	Volume
3.4¢	3.6¢	3.2¢	$1.676K	47.95K

Buyers (Bids)

No.	Vol.	Price($)
1	15454	3.3¢

Sellers (Offers)

Price($)	Vol.	No.
3.6¢	8175	1

View Market Depth

No.	Vol.	Price($)
1	15454	0.033
1	28000	0.031
1	20000	0.030
1	9000	0.028
1	20000	0.026

Price($)	Vol.	No.
0.036	8175	1
0.038	9917	1
0.039	32380	2
0.044	10000	1
0.050	443965	7

Last trade - 15.03pm 17/10/2024 (20 minute delay)

EOF (ASX) Chart

Ann: Appendix 4C - quarterly, page-29

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Ann: Appendix 4C - quarterly, page-29

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