I am looking forward to reading the Chairmans address on the company's immediate future.
It was incredibly poor form to wait until the release date lapsed to inform the market that the App was delayed and I don't accept that this information wasn't known before that date (IMO). But when you read back through this years announcements, you would almost slap yourself knowing that last weeks failure to deliver and last minute disclosure has been a consistent theme.
Yesterdays price action was typical of a very sick spec stock being abandoned to chase the run on the premium end of the ASX. It will come back strongly I believe, the Chairman's letter I would expect will update on the chip progress, something I continue to speculate will dwarf the revenues from the App. I recall previously reading a prototype expected end of year or early 2017. News on that front would give this a real sugar hit albeit short term.
The risk apart from failure to overcome the technical issues around the carrier status, is the cash burn which is going to increase as the company outsources some internal and external talent to sort out this mess. Previously the company projected break even in October, clearly this now will not occur, and failing to update on those milestones is in my view quite negligent. Company's do not run on goodwill and high expectations alone, I expect a capital management strategy before end of 2016 will be necessary and all going well, it would coincide with prototypes for hardware/chips.
I am not holding but if I had to speculate on the current price and risk/reward ratio, I would say there is far more to support upside from here than down.
WGL Price at posting:
2.7¢ Sentiment: None Disclosure: Not Held
