Interesting times ahead, page-61

Cortex408

"Well, the royalty revenue rose by 20% this quarter, so shouldn't the SP also go up by 20%?"

The simple answer is "NO". The fact is that, based on fundamental analysis, the SP is already overpriced. With a Market Capitalisation of $35 million and NO earnings the SP should be much lower. Almost 5 years after the first P&G deal "promised" (according to many posters on HC) earnings in the hundreds of millions of dollars, OBJ is still nowhere near breaking even. The situation now is far worse than it was 4 years ago. There is a cash shortfall of almost $2.5 million per annum and available cash of just $2.9 million on 31 December 2018 (so even less now). It is glaringly obvious that a CR will be necessary sometime during 2019 with the probable listing price being at 1.5 cents or below. What do you think that will do to the SP? How much cash will OBJ need to launch BG (with no guarantee of success BTW) into a very competitive market? What effect will that have on dilution of the almost 2 BILLION shares already in the marketplace? These are more than just rhetorical questions. 

For many years now the OBJ cheersquad (somewhat diminished these days BTW) have been claiming that me "banging on" about the inflated MC is irrelevant because of OBJ's "potential". How much longer are shareholders going to wait for this elusive "potential" to materialise? Long gone are the days of PE ratios of 30 for companies like OBJ, somewhere between 15-18 is more realistic in the current environment. Even then, OBJ would require $2 million per annum EARNINGS (not revenue) to justify today's SP. 

I have had friendly exchanges with many posters over the years and I wish all shareholders well with their holdings but it is sad to see OBJ back where it started its impressive rise in 2012/13/14. I started questioning the sharp rise in the SP whilst I was a still a shareholder and eventually sold out before the high-highs, believing the hype was unsustainable. I was wrong initially as the SP went up even higher after I sold but I have always kept an eye on these threads and OBJ's announcements in the hope that I can be tempted back to the fold (having put so much time and effort into researching OBJ). Sadly, I have seen nothing of late of any substance, just more carrot-dangling from a new generation of management. Does anyone know if ABDM is still a holder? GLTAH.