Hey Jumbie, still around on here? KSS has hit 35c prior resistance, exactly as I predicted. There should be some short term support at 35c. If we fail this test of 35c you're looking at 25c as the next level down. Would have been a great short at 53c which is now overhead resistance.
Global macro is still terrible and a greater US recession will hit in 6-12 months when the fed likely raises rates at the next FOMC. There's no great uptick in volume yet which to me suggests it's likely there's more downside to come.
Only 4.5c Euro NTA. We need more cash coming in. Still concerning is the following on page 7 of the Half Yearly.
As a result of the loss incurred and the operating cash outflows during the half-year ended 30 June 2022, and pending the completion of the commissioning of satellite clusters and delivery of commercial services, there is a material uncertainty onwhether the Group can continue as a going concern. The directors consider that the Group will continue as a going concern, as explained in note 2 to the financial statements.
And even more concerning:
As at the date of the approval of these interim consolidated financial statements, the following activities have taken place: Cluster 1 was launched in November 2020 and has been operational since 1 July 2021, however due to technical issues with 2 of the satellites, the Cluster was fully impaired in June 2022.
I haven't seen anything before to concede that they have borked the 1st cluster, I would have thought this is a material impact event and that they should have disclosed that to the market.
I'm staying well clear of this until they can complete KSF2 and KSF3. At present they have pretty much no income, plenty of debt and this is a very high risk until they confirm successful commissioning of at least one cluster.
KSS Price at posting:
37.0¢ Sentiment: Sell Disclosure: Not Held
