Hi Goldbear,
Could you please clarify:
"It's a realpolitik note - it's not corporate waffle..."
"...each time the ceo issues another vacuous note like this one."
"this stock has been tanking for what - 15-18 months."
Actually, Buddy re-listed exactly 12 months ago, 31 December 2015.
http://www.asx.com.au/asxpdf/20151230/pdf/434479nz0n14wp.pdf
The offer raised $12.5 million at ten cents a share. This means those who got shares on the offer were in the money throughout most of 2016, until early August when the SP finally dipped below 1o cents for the first time.
From around August 2015 to the suspension in October 2015 there was significant hype around, not just Buddy, but many RTO's. They were very much
soup du jour among retail and pro traders alike. With hindsight, Buddy was the unfortunate beneficiary of that hype, with the SP being promoted to unrealistic, and as it turned out, unsustainable levels by the general market euphoria.
Having watched the fortunes - or not - of similar RTO's this year, it is clear that the pro traders , many of whom are on HC, have the ability - financial muscle if you like, not to mention loyal, (myopic?) followers on HC - to promote any given stock pretty much where they want in order to profit.
In that respect, I think the unsustainability came in large part from the general market - retail and pro traders/investors alike - finally waking up to the truth of what Dave has been saying from day one - that revenue was/is a tertiary function of data volume and connected devices, that it will take longer than those with a short-term mindset initially thought. From there it was simply a matter of taking profit while the going was good with the SP trading above issue price, and moving on to greener pastures.
From August through to the beginning of December 2016 the price range traded between 8-10 cents while the market waited for the Zentri/Noveda dal to close. It wasn't until the Zentri exit and ensuing perceived execution risk around Noveda, that the SP dropped out of the channel to the current lows.
In summary, I think - once again - your criticism of Dave - accusing him of a lack of thought or intelligence - indeed vacuous - is harsh and unjustified. Dave is not lacking in intelligence or given to making vacuous statements, in the same way you are not. On the contrary, he has been honest and truthful from day one, even admitting to mistakes re execution of the M&A with Zentri, which they will learn from.
To be honest, I don't think I have ever heard a CEO at this end of the market publicly admitting to mistakes and promising to learn from them going forward. It is a rare thing.
In the same spirit, perhaps you could try to be more clear on the facts around important things like how long Buddy has been listed, and also perhaps avoid emotional statements like, "
this stock has been tanking for what - 15-18 months."
Such exaggerations are unnecessarily alarmist and help create a false sense of insight around the truth of what has actually transpired.
While I enjoy your posts and insights both here and on the Gold Thread, I am still confused about your sentiment re Buddy. Despite your overt criticisms of Dave and his management of the company - clearly you still see a value proposition in what the team at Buddy are working to achieve under his leadership
To my way of thinking, other than current market perception - and perhaps Zentri - nothing has changed from Dave's original value proposition for Buddy. The business plan is being executed as planned, ahead of schedule. Maybe it's just me, bit I don't see that as a bad thing.
In this respect I am intrigued by this comment in the recent email to
Cardpro:
"Please know that I’m acutely aware of shareholder concerns around the price, and I’m actually in Sydney right now working on this."
All in all, I'm looking forward to the EOY update next week
