I think the rerate will come when/if the company can show that...

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morganp

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04/02/20

11:32

Post #: 42734162
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Originally posted by stockrock: ↑

What Fluence is experiencing is not uncommon... they have spread their business far and wide at an early stage... in the hope that some of their upfront investment in regions will be profitable and continue.. however it is perfectly reasonable to expect that some regions will not be, and they will shut it down.

Fluence could shut down all other regions except China, and it'll probably be profitable very shortly if not already... but what about Egypt, Europe, Middle East, North and South America, Sth East Asia.. Australia?

Sowing their seeds in so many regions at an early stage is costly, but if one or two become profitable.. it allows the rest of the regions to get their foot hold into the respective markets and eventually break through as well.

China is clearly the fastest market for uptake.. and Fluence are banking on it to literally fund their global footprint. If it pays off, the exponential growth will be fueled by several markets at once.. through geographical diversification, the business will experience different rates of uptake in each region, but it will also be able to withstand regional issues in the long run.

Nobody knows when the market is going to put all the pieces together and give FLC the re-rate is deserves... it might be this year, it might be the next.. but as many have said here already, this isn't a short game they are playing ... in hindsight I would be much better off not buying any shares in the past couple of years and just bought now or even later... I am not worried about my investment in FLC, naturally I am disappointed my average isn't much lower.. but that I can live with... been through much worse.

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I think the rerate will come when/if the company can show that it can actually be sustainably EBITDA+. And to do that they need to cut costs.

I would love to see a break down of costs for staff/admin/offices etc. Surely they can quite easily cut this further.

The real question is. Is FLC an avenue for the likes of Henry and Ron to use other peoples money to build there ideal product without the need to make a profit or do they actually want to build and run a successful/profitable company.

FLC Price at posting: 35.0¢ Sentiment: Hold Disclosure: Held
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Last 12.0¢		Change -0.005(4.00%)		Mkt cap ! $129.1M

Open	High	Low	Value	Volume
12.0¢	12.5¢	11.5¢	$58.25K	485.9K

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No.	Vol.	Price($)
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Price($)	Vol.	No.
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No.	Vol.	Price($)
1	76680	0.115
4	161200	0.110
4	235000	0.100
1	50000	0.095
2	200500	0.085

Price($)	Vol.	No.
0.120	244320	2
0.125	103770	1
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0.140	97500	1
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I think the rerate will come when/if the company can show that...

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I think the rerate will come when/if the company can show that...

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ASX Market Close: Index gains 1% after interest rates pause | June 18, 2024

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