AJX 9.09% 1.0¢ alexium international group limited

Ann: Shareholder Newsletter, page-8

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  1. 5,998 Posts.
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    This is one of the most important parts of the Ann;

    "our efforts to establish this method as the standard in the PCM market,"

    The company has come under pressure as competitors realised that AJX had a superior product and started discounting to try and keep their own sales.  This is relatively normal business activity for existing players when an innovative product enters the market and threatens your revenue stream.   

    The fact that the coy then realised that it had to have a scientific (read research published level)  method of measuring it's own product and others to be able to show superiority and it is now attempting to get this as the standard (in the absence of any other)  is a step that places them at the forefront of innovation in this sector.

    What this means is that all competitors have to develop something similar or accept that they are not as good and price into a commodity area .  AJX can then maintain its margins as it is the superior product.  

    This is a proven method of developing a market for a superior (and higher priced ) product, see A2M for how they combated claims that their milk was no different to A1, (when it was twice the price).  They commissioned scientific studies to show it was different (and better), this enabled them to maintain their margins and now everyone else is having to catch up.  

    If they can get their scientific tests accepted as the standard, it will be a true watershed moment and probably a trigger for T/O from one of the big boys.
 
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