Curious re-writing of history. It is a popular strategy these...

Curious re-writing of history. It is a popular strategy these days to ignore facts and perpetuate a narrative.

To set the record straight, the last quarter of totally Covid free trading was December, 2019. That quarter saw the company close out close to cash flow neutral for the first time with the genuine prospect of positive cash flow within 3- 6 months. The quarterly trend (under the old business model) was undeniable with turnover increasing strongly, margins maintained and overheads progressively shrinking as a percentage of sales. ALL KPI's were being met.

Covid clearly impacted the business and the B&M model has been abandoned as it is too capital intensive and directly affected by international travel and tourism. It was a once in a 100 year event, and beyond the control of every business on the planet.

Sunk costs with Broadway and store model were written off as non cash expenses in FY 2021. They had to be.

What we saw today was that in an extremely thinly traded stock, it is not hard for a 40% SP rise in a day if favourable news hits the market.

It is unlikely that the $500,000 capital raise would have been successful if the business was unable to show reasonable progress with its new influencer model. Progress does not guarantee successful execution to profitability, so risk here remains very elevated. That said, with additional time, funded by the fresh capital, as well as the new distribution channel in NZ, this story is far from over.

I have no idea how AUK will perform or whether it will even survive. However, from the somewhat fortunate position of participating in a few "100 baggers", it has the characteristics of every one of them. It also has the characteristics of a company breathing its last gasp.

I guess this is why it is 2c. I have punted it could go much much higher. If I am right, it will bring nothing more than a smile to my face that an Aussie business can reinvent itself.

If I am wrong, I will have lost 100% of the amount I have invested, which I am quite prepared for.

At this extremely pointy end of the speculative market, it is nearly always an all or nothing punt. No one should be shocked by either outcome.

Let those who want to be here, be here. If you have nothing of value to contribute, such as the previous posters on the thread, waste your time somewhere else. Please. Oh, and don't vilify management for putting together a business plan and having a go. I dare say they have far more business acumen and entrepreneurial guts than their critics.