I am well aware of the valid points that you have referenced Cracker.
All listed companies, and those requiring growth capital in particular, promote their profile by announcing optimistic expectations. In the long run it is beneficial to all shareholders that they do so. It is only the inexperienced retail investor group that will misinterpret them as established fact rather than general guidance. Often the discrepancy is only an issue of underestimating the time required for those expectations to be achieved.
For example you say that “they stated that they would be CFN by mid year (2016)”. If you check on those statements you should find that they will have been phrased only as an expectation or a target. Using available factual data of cashflows gave a much more reliable and objective estimate of when CFN would be achieved, and that is what I have tried to contribute to the AJX threads.
At times that ‘intentional optimism’ can be essential for a company to successfully pass through the early stages of capital demand until it becomes financially self-supporting. Once that happens the trained investor groups that base their analytical decisions on established facts, and don’t have their own money at risk, are then more likely to move in.
It is only the retailers, through investing their own funds, who are therefore more vulnerable to emotive issues and may base their decisions on principles other than business principles. It is always wise that we be aware of our position in the food chain.
I don’t expect much more to be announced tomorrow than was contained in the CR term sheets.
Cheers
AJX Price at posting:
38.0¢ Sentiment: Buy Disclosure: Held
(20min delay)