“My friends in the US can’t believe we’re only at $20m market cap” was such a nonsense comment. Maybe his friends are poor or don’t like putting their hands in the pockets, but if his US industry friends truly felt this way about BCCs products and the opportunity, they would be buying with their ears pinned back. As would company insiders. There’s insufficient volume (and no 3Ys in the case of directors) to suggest anything of the sort is happening.
The lack of transparency around Zoleo - the main growth driver of the business - is without doubt holding the SP back. You can’t have your cake and eat it too. I don’t really buy the sensitivity around the Zoleo disclosures either. If Garmin wants to aggressively compete on price they will do it if they feel Zoleo is eating their lunch regardless of any market disclosures.
The response to the question on M&A was also off the mark IMO. There’s no way they are going to grow inorganically when they are already thinly capitalised (relative to short and medium term working capital requirements - remembering Zoleo is the main growth engine and the hardware is low GM) and can’t sensibly offer scrip consideration without diluting the buggery out of shareholders given the low market cap.
But I’m still here and not planning to sell at this stage. Substandard disclosure / governance is part and parcel of the micro cap investing experience. Although I remain concerned about WSP’s exit from the register as they only came on board mid last year when Carl Hung sold down, around the current share price. I wonder if they know something we don’t.
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