I have contacted the company on several occasions to seek further clarification on many things, including questioning the auditors when the AGMs used to be held in Adelaide. Interactions included with Kate, Colin, Duncan, Ray etc. Things that I have sought clarification in include:
how revenues are recognised differently for each type of product and/or service sale
how cost of selling is different for each product/service contract (e.g. front loaded vs spread out)
whether costs are expensed or capitalised, including rationale
margins between products and/or services, including at what point in time (e.g. responding to competition or establishing a strategic foothold)
As I mentioned, my need to better understand Alcidion has increased as the company continues to evolve and grow.
In my view, the relevant people have a very good understanding of the numbers and drivers underpinning the numbers. Also, all their attitudes were conservative - they are more likely to under promise and over deliver. It is also important to note that all the key individuals have significant skin in the game. In fact, I would go as far as saying they are pretty much managing more than 40 cents of their own monies in every dollar. The incentive is therefore for them to do the right thing by shareholders because their interests are aligned to ours.
Again, these are my personal views based on my interactions and communications with the company. Others may feel differently based on their experiences with the company.
Perhaps this is why I am always interested to hear contrary viewpoints as others may have picked on something that I missed or unconsciously ignored due to my personal bias. Some may have at times view me as ramping based on some of the figures and information in my posts but I sincerely hope that I have provided sufficient information to back up those views.
ALC Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
