That is precisely why the BSM business model bodes well for the future. Our management are being very strategic and astute in building a broad customer base whilst building a relationship with a US producer of expandable and downstream products. BSM will not be competing on the open market against the likes of long-standing Chinese companies like Sungraf who are supplying the limited demand.
This is what the rampers of graphite hopefuls don't want known... that the demand is not there yet to accommodate more supply. They try to conceal the fact that competition exists. They are blatantly trying to manipulate would-be investors (readers of their forum) that the market for expandable graphite products is endless and that their company is invincible. The current limited demand doesn't affect BSM for three reasons:-
1. BSM is not seeking funding of AU$55,000,000 to be secured against its assets.
2. We are currently supplying the large-flake market NOT expandables (yet).
3. BSM is working towards a JV with a Urbix who sells end-products of expandable graphite (thus will have a ready-made consumer).
Bass is manoeuvering the company into a niche that I believe will weather it from the issues that potential oversupply will hinder other producers. I don't consider any graphite project company a nemesis. I do have contempt for the despicable bully behaviour that exists on one particular forum that permeates across into other graphite forums... downramping and denigrating other companies just because they are desperate to see their particular company progress to production.
As I have stated before, I don't consider BSM perfect but it is far from the failure that some want us to believe. I don't disagree with BF's maths (in fact, we agreed with the ballpark number of 2,000tpq required to cover costs) but I do question her motives behind continually denigrating our company. Yes, the company needs to start respecting the 3,000 other shareholders in this with them and to stop treating retail holders like "mushrooms" to be kept in the dark and fed manure. I am prepared to do the research to fill that void to ensure that I know what I have "got myself into" here. I do not want to crystalise my loss by selling at the bottom because of the noise made by downrampers and holders who are understandably frustrated and upset. I have been here too long to lose patience now and make a decision based on emotion.
My strategy is to hold til into next year, without intention of either buying more, holding or selling some. There are milestones to be announced soon. I am prepared to see this through to the next progression of production rates and the JV talks with Urbix next year. I don't see any advantage to selling now (unless one has a guaranteed "winner" elsewhere in the stockmarket to provide ROI and not compound the loss) or buying a new car that depreciates in value from the get-go. I intend reassessing my position in BSM once it has progressed beyond this current hurdle or inflection point. The main problem with being in a company that is growing is Cap Raisings and dilution. Best not to be invested at all in junior micro-cap stocks if you can't handle the reality of it.
I understand that LT holders sitting on a loss are frustrated... I am one of those holders remember. Frustrated to my wit's end sometimes. We just have to keep our cool. To what avail does venting our frustration in a public forum about the company help? It might make one feel better to get it off your chest, but it might also influence others to sell in the same way manipulators intentionally downramp in the hope of forcing the SP down so that they can buy at a lower price. Think about it... having a good old whinge (partly out of ignorance and frustration) could be contrary to your financial wishes. Perspective is what is required to here. Take in the facts (whether its from BF's extrapolations or others' highlighting of the positives) but maintain perspective. There is always going to be positives and negatives, peaks and troughs, one just has to keep an open mind. Management have an agenda that may sometimes appear self-serving (depending on one's frame of mind at the time) but that will hold all shareholders in good stead at some time in the future. Yes, shining a light onto it is not our company's fortè but the clues are there to be seen in the ASX announcements and in the achievements made in building our end-use customer base. In fact, the company deserves accolades for each and every end-user that the company has recruited into our order books. Not an easy task in such a tough market and difficult industry.
The problem is that the market and most LT holders are hung-up on the "positive cashflow" bit (the company rhetoric still ringing in our ears) but that has had to take a backseat in preference to perfecting and optimising our product in order to fulfil the most important aspect of this business, the customer base. This is just my opinion, but I believe that rates and volume will increase in tandem with our growing orders and sales. So long as the company is improving its product and sales, and continues the momentum into next year, cashflow will follow. i dont know if production rates have been intentionally held back allowing for sales to catch up, I dont know, and its purely a speculative thought on my part. I just take solace in the fact that our team has a lot of skin in the game and not one of their shares have been sold.
Apologies for the length of post. Not everyone's cup of tea, I know, but we are all entitled to voice an opinion. My views just happen to be more detailed, researched and deep. Don't like it, don't read it, but please don't attack it if you haven't read and comprehended it, that's all I ask.
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