Ann: Full Year Results FY20, page-18

October should see the next stage of the online selling model with Jd.com and other targetted database enhancements.

To reach its potential, the B&M stores obviously need customers. That looks a little way off.

To reach cash flow break even, the business is nearly there already, with little foot traffic.

I don't see a CR anytime soon, so I expect the SP to be range bound between 6.5c - 9.5c until some defining event triggers a break out. A break out can be both to the upside and to the downside, so risk is still high. However, the longer the business gets to grow its online sales, the more likely it will seen with upside not downside.

Volumes are still quite low so volatility will be the order of the day for some time yet.

LT investors should not fret. It takes time to put a business plan into effect and COVID-19 skittled a very strong trajectory. In 12 -18 months it is my view the SP will be solidly into double digits. Between now and then, I really don't care. Even the best retailers on the planet are struggling with uncertainty. AU8 is far from the best and its uncertainty is greater than most. That is why in the March panic, anyone could pick it up for under 5c.

Investment risk and execution risk are just that. This business carries both. Holders need to either have strong stomachs, or get out. This is not a stock for those wanting security or safety. It has the capacity to double quite quickly, as it already has. And it can of course sink.

I read much into the swift action of management to cut their own wages and reduce staff during the crisis. That shows skin in the game is real. They had previously planned a growth strategy that was pretty well executed until the virus broke, so I am backing them in, with decent money to pull off a the building of premium retail distributor.

I reject the suggestion this is a glorified daigou. That comment displays little knowledge of the nuance in retail distribution and the segmentation of customers. I guess this is HC so there will always be the armchair experts who have never achieved anything, putting down the efforts of those who do.

That's life.

GLTALTSH and please DYOR.