AJX 9.09% 1.0¢ alexium international group limited

At this juncture of the company’s development communication...

  1. 351 Posts.
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    At this juncture of the company’s development communication strategy is front and centre. The company is not valued on revenue, it’s valued on future revenue and the associated level of risk so if the business model is not clearly and transparently communicated it can be disastrous. In my mind the “descending triangle” TA set up reflects exactly the fact that investor understanding is cloudy and depending on which way it solidifies will determine the SP break-out direction in the near term.

    Much has been said about communication strategy, on quality and quantity. The quantity factor is a red herring. Nobody’s confidence is bolstered by increasing obscuration. And for quality, well we know too well that it’s been, well, crap.

    If we’re get more frequent, quality communications, and the news is good the SP will fly. If we get less communication, good or bad, investors will act on their lack of trust.

    I’ve watched other companies manage their communications strategies much MUCH better. Like AJX, much was promised early on and not delivered, with the share price spiking and dramatically falling off soon after. A failed acquisition later on after the reversal could have been disastrous but for a clear and transparent dialog about what happened and the subsequent change in business model with shareholders. This dialog has continued and the fruit of that has been a steadily increasing SP.
    The aforementioned company has held investor conferences immediately post 4C’s with clear, detailed and transparent responses to shareholders questions.

    I’m happy NC is gone - his exhuberent bluster and shareholder contempt (through regular feed of crap) has been detrimental to my financial health . I'm very happy. Now what we need is humble honesty and transparency from the new management explaining the strategy and the state of play. Dirk has begun to build credibility with the CFN result but the ordinary comparative revenue growth, even though many think they understand, has to be articulated by the company.

    Dirk needs to hold an Investor tele-conference ASAP laying bare the strategy and the events leading up to the 4C, and an honest disclosure of what’s coming down the pipeline; and by that I don’t mean fluffy projections, I mean real market sector break down, competitive analysis, degree of engagement with new business opportunities. They can leave the $’s out but they need to clearly show where the $’s will come from and an assessment of the degree of confidence in whether the business will be won.

    This is all just my opinion of what I think will give me confidence after having my confidence (and capital) nuked over the previous two years.
 
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