Ann: Appendix 3B, page-11

Yes, got to agree with you about overvaluation based on current income. The company valued itself at 20 cents per share, and it’s currently trading over 3x that with no new contracts or products and scant announcements beyond opening a door to China. That means the current price is based on hope for the future alone, which is clearly waning.

I’m as disappointed as anyone who bought in after it hit the market, and admit that my decision was based on the products, the management and the hype. That was stupid and I should’ve waited for the dust to settle.

But... the things that led me to buying in at a (now) inflated price are still there. At the risk of sounding like a ramper, here’s a reminder:
- The company has an impressive management that’s getting stronger with the addition of the Cochlear ex-CEO as advisor, and the presence of the current ResMed CFO as chairman.
- The products are unique, impressive and have doctor support.
- The opening into China is significant, even if not immediately helpful financially.
- The granting of TGA in Australia will help locally and globally
- OSX is developing new products in the fields of dental and long bone
- The addressable market is huge and OSX’s share is currently tiny, so there’s a very long runway for growth.
- The company has made no outrageous claims or projections (actually, none at all) which is a nice change for a newly listed company. It actually makes money (also a refreshing change), has great plans for global growth, is not rushing for quick growth (often the undoing of companies), has low overheads, etc, etc.

I wouldn’t hit the sell button yet, although without any developments I agree the price will fall further. Sure, it’s bloody awful seeing your investment evaporate every day. But focus on the longer term and I think there’s plenty of good news and good returns to be had. It’ll just take some steady nerves along the way there.