Gents and Ladies Good morning. The silence is deafening. With only just over 6 months cash on hand to pay for existing costs structure its fair enough the market is reacting. No matter what happens people will try to protect their capital and without any hopeful signs of breaking even or stopping the cash burn, capital will exit and sell their shares. The constant cycle of Capital raise with hope of profits from existing Chairman JT has not brought enough new business. With $60m raised in his time and only $15m revenue p.a. Its a fail at this point. We all hope but it would appear JT is hedging his bets a little as well. He has increased his salary so even if it fails he wins with higher salary for as long as it lasts. Very poor form in my view when he has failed to reward shareholders he has rewarded himself....
I cut and past last qtrs cashflow below and have comments that give some hope. Breakeven revenue based on above if we take NET at being truthful that financing costs (interest) is non recurring makes breakeven for the qtr revenue of $8.632m or $34.4m p.a in sales. Lets give NET some credit and despite not hearing anything, if NET can reduce overheads, do a similar sales increase as 2020 year then perhaps NET can get to breakeven by end 2021, stop cash burn and BINGO we have a business. A business at breakeven can get more traditional finance and perhaps have a growth strategy that wont make them broke with interest costs of 18plus percent!
My hopeful thoughts are we are starting to look like a real business and if breakeven can be established with sales growing at the rate it did in 2020(realistic given its been done once) then I feel we will establish a vehicle that can grow without having to dilute shareholders wealth with rediculous capital raises and financing.
I got my capital out on the last share price rise so I am free carrying this stock. I am not selling balance as I feel it has a chance if only a speculative chance of success that I am willing to review in 12 months.
I look forward to the next announcements as the silence is killing me.
I hope this stock rewards and to all those long suffering Long time shareholders I hope it comes good.
NET Price at posting:
4.6¢ Sentiment: Hold Disclosure: Held
(20min delay)