Oh, that sort of a gap. Makes sense now :)Looks like no luck on...

Oh, that sort of a gap. Makes sense now

Looks like no luck on that 18.5c for those on the buy side, with 19c holding again. The sp hasn't made a new low for four days now so this low volume correction might be just about over - at least that is my guess. News could drop any day now on a supplier agreement. The DFS would be hot on its heels so the supplier agreement could see a fresh wave of buying ahead of the then imminent DFS. We could be making new highs very soon. Probably a good little buying opportunity right now but it would be difficult to get decent volume. Only $44,000 worth traded on the ASX today and still only $47,000 worth traded including Chi-X.
We have a nice pattern of higher lows and higher highs. I'm expecting to see this uptrend accelerate higher on release of the DFS with the next couple of rallies - that's based on the expected outstanding fundamentals.
There is always risk in any business. I have owned businesses all my life in various industries. If someone offered a business for sale for $125,000 and they showed a good business case that the business would generate $265,000 free cash flow every year, I would be amazed because I've never seen any business sold that cheap with anything like that type of cash flow. You would normally be getting $50,000 return on many businesses that sell for around $100,000 -$150,000 and then you would typically need to work in that business - so effectively you are paying $100,000 - $150,000 to buy a $50,000 wage. Not good value by any means but I have seen that scenario over and over again. However an expected $265,000 per year return on a $125,000 purchase in a business where you don't have to put in any hours; now that's outstanding value. That's the return on offer here. That's why I expect very strong upside here at some time soon after the DFS confirms strong fundamentals.