Yeah cheers Wilson,1share and kiwi...I appreciate your thumbs up... You know realistically with some of the generic traders down ramping going on here most people are over responding to intricate technical details, or company histories that IMO are seriously immaterial in comparison to the significance of the patch technology....
The patch is 10 times better than anything else on the market. The Market is huge....The numbers here lend themselves to the 10's if not 100's of millions of dollars globally.
Yes 3M are under no obligation by the terms of the agreement to undertake a partnership in production or distribution....The Patch is 10x more effective/efficient than anything on the market..... If I were in their shoes.....Hmmm....From a production stand point??..
If I could produce a product at one tenth the present cost and still charge the same price for each unit.....Hmmmm..900% increased unit profit margins... What would my choice be?????
If 3M don't take on this product how long will their 80% market share last.........at 1 tenth the cost to produce, any competitor could simply take on this patch and buy that market share out of 3M control by reducing their price to wholesalers by 50% and still be holding a 400% increased profit margin.
IMHO 3M will protect their market share and make a very generous offer to OBJ.....But what OBJ have to be very very careful of is that 3M are market giants and for a very good reason...They have teams of lawers who are paid very well to make sure that what ever deal they make will secure 3M's market share advantage... This may lead to placing OBJ under an exclusivity clause which will restrict OBJ from entering into further agreements with other distributing companies...Although on the scale of things the revenue from 3M with their %80 market share I don't think that OBJ will even need to consider other distributors....
If you can withstand the traders volatility in a hold position....You could do very very well...Indeed I am not only holding onto my stock I am locking it away from any market temptations and will only be reminded that I have stock each time I receive a dividend cheque in the mail...
Thats just the way I see it.....I could have it all wrong...But then I might not.
If a horse had a 99.9999% chance of winning a race and the bookies were giving odds higher than 100 to one.....Would you place the bet???? Seriously if you're a market newbie, don't bet your life savings here you shouldn't need to...Just keep it real.... It is still just a piece of script paper that you're buying...Thanks to the GFC I have three pieces of script paper on my wall that remind me of that fact. BNB, CUO and AFG.. Blue chips the professionals said..I was away for a few weeks and 70% of my portfolio disappeared..I don't listen to professionals anymore i DO MY OWN RESEARCH and form my own opinion. Just like everyone should do....
Once again sorry for the length.
OBJ Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
(20min delay)