Have looked at this company a few times and the valuation held...

Have looked at this company a few times and the valuation held me back along with some previous sales updates requiring quite a bit of cross checking and back testing to pull actual numbers together - way more than normally required.

Well this recent sales update took the cake for mine. It appears to have been deliberate in its ambiguity and use of percentages rather than actual numbers and selective in reported periods.

Throw in some directors selling in early December following weak sales in October and Nov and you've gone a suspect looking situation.

The ASX has done a good job here forcing this company to disclose actual sales figures and help keep the market informed.

The query also clearly shows that management had a very good idea of the weaker numbers when they sold in early December when the market was not armed with the same information.

They try and explain it away as wanting to report a complete period of data at the end of December. I don't buy that - as they have been more than happy to pump out their $1mil month, $2mil month announcements in the past. They would argue that those were material improvements in sales that warrant announcement but it works both ways - if sales are materially lower than expected, as they were in Oct and Nov - then you should update the market out of cycle as they did with their pump announcements of $1m and $2mil months. Not only did they not do this - but they sold on market instead. Terrible.

So that seals the deal for me - this may go on to be a successful company but if you can't trust management then it's not worth the risk. On balance - I've lost confidence in the management and their disclosure here. There are so many other companies out there 2000 odd just on ASX - I'm sure there are just as good opportunities out there with better disclosure.

Also the valuation (even now) still requires continued strong growth to be sustained. Covid may continue to dampen that for the better part of this year in parts of US and Europe.