Without a doubt this past week has been frustrating as sp hit an all time low of 1.6c, it means market has zero confidence and we are basically priced as a failure. However there's one thing to keep in mind - fundamentals have not changed. So allow me to take this opportunity to give my 2 cent.
About myself
I'm a medium-long term investor with a focus on early stage tech stocks, over the past 2 years I have held:
SAS from 2c (25m MC) to 23c (350m MC);
EPT (now PCK) from 2c (12m MC) to 8c (50m MC);
CR8 (now FGO) from 3.5c (30m MC) to 8.5c (80m MC);
WBT from 1.6c (22m MC) to 7.2c (100m MC)
Disclosure: I been following UTR since it was listed back in Dec 2016 and currently own 1m shares with an average of 2c.
Why am I telling you all this?
I'm not trying to brag how well I've done, but to show why I see these stocks as undervalued during those times based on my research on their fundamentals. With UTR, I have watched it go from when they were still in anode development to now owning IPs to full battery solution (anode, cathode & electrolyte). Management continues to deliver and tech continues to improve, yet sp dips further and further.
After the recent CR, the company has $2.2m in bank (as of 30 Jun) with expected cash burn of $840k this quarter, which means we have enough cash to survive until at least end of the year. The market is treating UTR relatively harsh in my opinion comparing to peers. If you look across to BCT, their market cap doubled to $30m upon signing a US$15.9m 3 year sales contract.
On the other hand, UTR with its 2 sales agreement:
- Blitz (3 year deal, minimum US$4m first year) and
- PT Garda Parsada (JV where UTR holds 70% interest, with minimum US$5m secured orders from Indo military units)
So a company with roughly US$7.5m revenue pouring in within the next 12 months, has its sp dipped to an all time low with a ridiculous market cap of $14m. Whoever selling at current prices might as well buy a new calculator because none of these make sense to me at the moment.
I would be interested to know who has been selling of late as anyone who sold below 2c would have made a loss, let me explain why. Majority of directors and seed holders would've owned shares valued at 5c (from RTO); the company did 2 cap raises (2c last year and 2.3c this year). So in theory no one could've possibly have shares that were worth less than 2c unless they were given to them for free.
Response from CEO Kobi
In a recent interview (thanks @Trojanmonkey for sharing), Kobi mentioned he's happy with the company's progress and excited about what's to come. I have also emailed him with some questions on Friday and he replied saying there will be letter updates for shareholders next week.
My message Fundamentals have not changed. Don't panic just because there are people selling, have faith in the research you did and believe in the reasons you invested your money here. We are currently in a dark tunnel but if we hang on there will be light at the end of our ride.
Let's hope we get some positive news next week!
Hez
UTR Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
(20min delay)