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The explanation for the current share price is simple. It's a...

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LeeKing

5,885 Posts.

226

05/10/17

19:26

Post #: 27693924
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Originally posted by BazTokyo ↑

Well these pricks lost my support a while back. Looking forward to the lynching at the Agm. Bunch of arrogant self-serving individuals.

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Originally posted by jasetheace40 ↑

There are valid grievances underpinning your posts Baz . I always read them, and tend to agree with at least something in every one, but there's just too much emotion and no balance at all.

Let me summarize your points, if I may, but without the emotion:

The current share price is heading towards 3.5 cents at a time when the company has long given the impression that, at this point in the evolution of the company, it should be well in excess of that (at least 10 cents by now, if one is to be overly conservative). So 3.5 cents is simply unacceptable. The Board needs to explain why this is so and what measures they are going to take to improve this immediately.

The company has been deficient with respect to its communications to shareholders and to the market more generally, as was recently noted by broking firm Argonaut, which referred to "discrepancies" and "representations" that made the situation with respect to the company unclear. This is unacceptable. The Board needs to explain why this is so and what measures they are going to take to improve this immediately.

More generally, it is evident that the Board has not been able to respond adequately to the market's sentiment of "disillusionment" as reflected by the current share price. This disillusionment has not come about suddenly, but rather has been a long drawn out process as reflected by the steady decline of the share price since the last AGM. Company resources have not been applied to fix the problem when, having regard to the fundamental progress of the company, this should be achievable.

And to balance, consider these plausible explanations (which are not intended to excuse the above, but at least makes it clear that the company is fundamentally on the road to success).

The amount of human resources required of the company for the purposes of commercializing its technologies over the last few years has increased exponentially and has been much more burdensome for management than was ever contemplated. Management has probably prioritized their time towards those matters, which understandbly they have considered much more important, than to shareholder governance issues. The latter has been neglected as a consequence, and it has had negative repercussions on the share price. It has also resulted in lack of attention to detail with respect to shareholder communications which has irked many investors.

Significant revenues are on the horizon, and that is likely to be the most effective and efficient "cure" to the current market sentiment.

The company's hands are tied significantly with respect to what matters can be disclosed about these anticipated revenues and to the commercial agreements/negotiations in place. In particular, P&G's lawyers have imposed such tight confidentiality restrictions on the company that management can't even communicate that the company is not permitted to mention certain subject matter. Lack of information is a relatively short-term price shareholders must pay for long-term success. When the company does communicate about a matter subject of confidentiality restrictions, they have been so paranoid about taking care to appease the confidentiality concerns of P&G, that the final market communication comes out jumbled and unclear. The end result has been unfortunate, but management is in extremely difficult position whenever it has attempted to communicate about such matters.

And so there I would give them benefit of the doubt right now, for those reasons. I suspect they will endeavour to address all these issues at the AGM.

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Originally posted by attitudes ↑

Totally agree Jase balance is important, it amazes me how people who claim to own shares in this company, are so ready to knock this company and it's board and then wonder why this stock goes down. This public forum has a far greater impact then most people believe.

I am not saying it is entirely the result of hotcopper, but I believe it plays a major part in establishing sentiment.

When I have an issue with the board I take it to the board directly...I do not air it here.

Jase I appreciate you constant contribution ...we need this kind of commitment to contribute.

All my opinion only

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The explanation for the current share price is simple. It's a reasonable price given what we know - 10 years of work for only one unquantifiable deal. The previous highs were due to extreme upramping and groupthink. Now reality is dawning. That's all. And management aren't especially blameworthy. They contributed to the high expectations only because part of the job of an ASX company director is to promote the company and to present it in a positive light. It was the obsessive posters who interpreted management's positive statements as under-statements, and negative statements as "confidential" necessities.

What surprises me is that many people still haven't grasped this.
Last edited by LeeKing: 05/10/17

OBJ Price at posting: 3.4¢ Sentiment: None Disclosure: Not Held
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