SteveI had a listen to the webinar and these are my...

Steve

I had a listen to the webinar and these are my observations.

1) Gerard's presentation was necessarily short, sharp and concise given the time made available by Reach.
2) Gerard sounded as ebullient, confident and on top of his game as he ever has in spruiking the prospects of the company.
3) The sustained and quite impressive growth in the unweighted and weighted sales pipelines no doubt gave him the confidence to really pitch the prospects of the company.
4) It sounded like the audience was invited larger SP3 investors, brokers and institutions, although that description may just have been a bit of hype, and a mild dollop of hyperbole from the Reach moderator.
5) Given that cashflow and profitability were not matters that were addressed in the deck that was released yesterday in advance of the webinar, it was unsurprising I guess that those matters weren't addressed in the webinar spiel by Gerard.
6) One of the questions that was asked did concern the timetable for profitability, and again, unsurprisingly, Gerard played a straight bat saying that "we don't give guidance on profitability" - adding that "to do so would require the issuing of another new deck". Having said that, it was apparent that he was desperately searching for more generalised words that would convey some sort of imminence of profitability eg "within a very finite time period".
7) Gerard's apparent keenness to try and find a way of conveying a sense of imminence for sustainable cashflow positivity and profitability firmly places the elephant in the room (in my opinion) viz a viz addressing the financing strategy that will be used by the company to give effect to the above features and it wouldn't surprise me - in fact I would expect that much thought is being given to addressing that issue for the benefit of all shareholders in either the 4C quarterly activities report due in the next week or two or three, or in the Annual Report due in August.
8) Gerard spoke about key expenditures that are panning out in the short term in order to accelerate growth momentum. While these were things that have been mentioned before, it is worth noting that they include establishing a direct sales presence in South Australia. With that expense, along with the fact that the expense of a new Chief Technology Officer has been accruing since April, as well as commitments to east coast trade shows in June and east coast meetings by the CEO with clients et al in May, it seems to me that Spectur is maximising the preconditions for further accelerating growth momentum which could however, show up in the forthcoming 4C as a bit of a drag on any significant improvements in cashflows through the last quarter. So this underscores the likelihood that the elephant in the room will be addressed much sooner rather than later IMHO.

zeno9