without meaning to scare the horses..., page-19

Wow!

I take a day off and what happens? Price below $1 and all this negativity!

As we all know, however, The market is always right (on price). It can get it wrong on fundamentals though. I agree that it can be a bit soul destroying to see the price down here but that is where the price is and we all have to make our own decisions based upon whatever tools we decide to use.

Just a couple of clarifying points.

- The company has enough cash on hand to operate for at least 2 years, even if they were to not make a single sale.

- Cellestis (as many others) was listed on the ASX on the basis of it's commitment to spend the cash raised to bring the business "to life". The idea of raising cash in a float is to spend it - not sit on it.

- Apparently, the original plans of the company were to not go below $5m cash. This was obviuosly a planned buffer against unforseen events. It is now looking that that buffer will be entered in the next quarter due to the delays that we have experienced. Bear in mind, however, that the company has spend a little over half of the IPO cash to get us to the stage where we are now ready to make significant sales.

- The companys' break even point is a very modest number of sales (500k tests?). At even that level the company is likely to be not only profitable but also cashflow positive.

Personally, I'm content to see what the next few months and years bring.