I am surprised by a lot of the HC comments. BLG do not show any signs of problems. In fact the last two announcements have been regarding significant improvements to currently available products and progress towards new releases. We also saw the awarding of a Gold medal for the top Australian manufacturers. Liquidity across the entire ASX small cap market has been dreadful since February. Reasons/ excuses have included tax loss selling, fund redemptions, falling investor sentiment and global headwinds. But I believe the main reason is 12 consecutive rate rises and the global removal of liquidity. Having said that, the is still a tremendous amount of funds sitting on the sidelines for the right stocks at the right times. Things will move hard when they are ready to move. BLG will be in that camp at some stage and patience for holders will be regarded by a significant re rating. In terms of funding, the company has made it very clear that a >$7m R&D grant is due in September, the applications for US chip funding will be announced by 31 October and their is continued and growing NSW Government interest to make NSW the manufacturing and technology capital of Australia. https://www.chiefscientist.nsw.gov.au/news/driving-semiconductor-capability-in-nsw I am still of the belief that the largest risk for BLG is a takeover from a bigger offshore player that does not allow them to reach their full share price potential. Continuing to accumulate as funds become available to me.
BLG Price at posting:
4.3¢ Sentiment: Buy Disclosure: Held
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