Management could also be actively pursuing and conducting due...

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yehmate

1,350 Posts.

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07/02/19

21:22

Post #: 37369413
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Originally posted by Van88 ↑

Just a couple of my thoughts, happy for feedback especially if i have gotten anything wrong:

I've decided to dip my toe in for a small parcel, buy order in this morning in the 4s, don't see me getting them at 3 anytime soon and its really not that much of a difference. cant see too much negative at this price only risk to significant capital loss would be a consolidation but i cant see that happening in the near term.

Still a highly risky stock, could very well go belly up soon so only in for a small amount. The issue they are going to have is they have no cash so the only option is basically a cap raise but who is going to participate without an acquisition, so this is a little bit of a going concern for me. Doesnt sound like they are ever going to get the ~$5 mill either

good thing is MC is fairly reasonable (not the best but not definitely not the worst) so plenty of room for cap raises without billions of shares being on the register, so any acquisition should be met positively. Outflows are very reasonable and no debt. classic shell company at the moment nothing going on just waiting for something to pop up

Also seems this company is more a "hobby" than anything else for our directors at the moment, their focus directed elsewhere, but I feel they need to get something done very soon - $300K in the bank will be eaten away in 12 months just in standard operating costs let alone costs on acquisitions

Overall comfortable with the risk and a buy to me at this price for a small amount. Fingers crossed we get something this financial year!

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Management could also be actively pursuing and conducting due diligence and have not found the right aquisition yet

When that time comes I would expect this to run pretty hard. Not much loose supply floating around, very low market cap and shares on issue are reasonable.

S3R Price at posting: 0.3¢ Sentiment: Buy Disclosure: Held
4 Upvote

2 Great analysis

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