In another thread the misery brigade banged on about some competitors exploring inherent flame retardant materials for products that overlap Alexium's current client products; car baby seats for example, Natik exploring inherent flame retardant material for future generation of uniforms etc. What that tells me is the current generation retardants are seriously on their way out and there are lots of market segments affected which represent a huge market opportunity. If there is interest, and better still competition, it indicates strong demand.
There is no market segment in which there is no competition. When i was initially buying into AJX at 60c, I tossed up AJX vs NTC which was at the same price level. My reasoning for going AJX was that I thought an Australian company producing electronic devices was operating in a crowded market. Japan, China, Korea and the US all producing similar devices at lower price point. Yet they are now $2.20 plus and at a very scary PE indeed. Unfortunately, events (rational or otherwise) have unfolded that have tracked AJX in a different direction, but the fundamentals are the ultimate guide and 2017 we hopefully should see the correction we all know will happen sooner or later.
AJX is in a much more sparsely populated market, and their advantage is simplicity in that their product can be applied to existing materials in the markets of interest and price point as compared to inherently FR materials. I'm heartened by the fact that there are players out there attempting to "cut our lunch". Let the games begin! And let the competitors who can't beat us, join us (with licensing deals).
AJX Price at posting:
54.0¢ Sentiment: Buy Disclosure: Held
