I think just the “organic” growth alone in the business following through into the 4C’s should support the share-price going forward without any big announcements.
I’d imagine the next newsletter will continue to expound the strength in sales for this current quarter and we should now follow an increasing trend in quarterly sales over the rest of the year.
Any slow down in the last quarter will now likely be offset by diversification into other market segments or the start of Aexiflam or licencing sales or a murid of other potential areas.
Who knows when bigger deals will fall – they are certainly a number of them out there and hopefully we will see them drop over the coming months - but the organic growth will continue and we will do okay from that alone.
As for me I will continue to hold and top up as I still see the potential – CY 2018 I think will be about the return to cash neutrality and actual profitability towards year-end and CY 2019 the explosion.
The only issue with cashflow I see (which won’t impact profitability) is the timing difference between the supply of goods and cash receipt of those goods from any large sales.
Also from the last 4c and newsletter …
“2018 is shaping up to be a year of unprecedented growth. In the month of January, Alexium realized one of its largest months of specialty chemical shipments”
“The early feedback we are getting is that 2018 will significantly outperform last year.”
“Alexium has added six new customers in the Phase Change Material (PCM) market since the commencement of FY2018, doubling the customer base acquired in 2017”
“…business is forecasted to substantially rebound in Q3 FY 2018 with top-line revenue forecasted to reach record highs in CY 2018 with average margins above long term targets.”
“…a return towards cash neutrality. As volumes from existing customers return and new customer continue to be added, Alexium is well poised to see positive cash generation again in the near future.”
AJX Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
