I said quite a long time ago what the problem is, and I would not even call it a problem. Its just a simple fact of life with unproven start ups and every bit as much an opportunity as it a problem. I feel a bit silly calling us a start up after more than 17 years but its about our point in our development more than our age. Its taken us quite a long time to become an overnight success.
"It's not sales, it's not projections, it's not product, it's not manufacturing...........so what is it?"
Its belief!
Read the latest presentation and believe it lock stock and barrel and you are a buyer. Full Stop!
Last years sales and growth percentage is there.
Projected sales are impressive.
The product is, like, magic and everyone wants it, or should.
Manufacturing is steady and ramping up(more projections).
No problems yet.
The problem is belief.
We believe.
Whoever was buying today ( there was at least 1 person buying large parcels today) has decided to believe, or increased their pre-existing belief.
The only thing holding the share price back is the balance of believers to not so sures to nay sayers in the market. Last time I made this argument I took Newing's price target as an example. Depending on the discount rate you choose to apply, the shares are worth $2, $2.50, $3...... Why aren't they? The projections are there. The valuation is justified based on the numbers used. Why is the share price not there???? Because not everyone believes. YET! When everyone does believe it will be too late (in my opinion) because the shares will be fully priced. All of the risk will be taken out as will all of the reward.
If you are going to buy a speculative stock you have to accept that it will take time for the market to come around to your way of thinking. That's how we make money, that's why speculative stocks are worth buying!! The reason we all bought is that we think its worth more than we paid. Some people need a greater degree of certainty than others and that will always be the case.
You cannot beat the market over the head and make them believe. You have to wait until the individuals that make up the market have enough evidence to change their individual expectations of the company.
Relax, if you can. And wait. Its all we can do. I believe the future is bright. You believe that the future is bright. When the company proves the pudding and the market believes, we will be vindicated and rich. That's how it works
PET Price at posting:
62.0¢ Sentiment: Buy Disclosure: Held
(20min delay)