General Comments, page-1428

I am reposting this reply over here.

As it turns out; I was right again. The call for a 0.5c increase was baseless. But hey, it got 9 TU's. And we saw 2 baseless calls for partnerships deals, just because... because. Or is it the fascination/obsession with those oppies or what?

https://hotcopper.com.au/posts/48183848/single

"Nothing on the sell side to 4c"

Yes. The stock is illiquid.

"This could quite well jump up half a cent tomorrow"

Based on what exactly?

It was a positive to finally get some words from Spark. NOR had an opportunity to provide insights into Spark VM. But instead we got the usual NOR-speak aka waffle. Always big on the words. And even then, they blew it. Fancy having to release a clarification about the most critical aspect of the business at this stage: revenues.

So where are the new buyers coming from and why?

Any non-rusted on NOR perma-bull would look at the last 1-2 years of announcements aka research. Here prospective investors would see NOR has a habit of over-promising and under-delivering: partnerships, telcos.

NOR are closer to announcing a CR more than anything else. When? Next week after the oppies stop trading and before the next abysmal Q is released. Why?
1. NOR averaged $730k in outgoings per Q last year
2. R&D Grant usually comes in Dec Q; besides most would be used to offset the loan
3. Sensor Tower showed $15k gross for all NOR Apps for September
4. The clarification Ann said NOR will get a commission when downloads exceed a mystery number. Besides this is outside the Sep Q

Even with reduced R&D expenditure (and future reduced R&D grants as a result), where is the money coming from to reduce the outgoings gap? Keep in mind the new Q format requires NOR to declare they can cover the next 2 Q's in outgoings.

We may even see an ASX Query because there has been a material change in the Spark VM deal; from revenue share to commission with hurdles.

All imo