Are you a broken record?! Have you seen the cash balance at 30...

Are you a broken record?! Have you seen the cash balance at 30 June?! It was $6.473 million. $2.961 was raised subsequently which is after fees net $2.783.

So they have $9.25 million to pay off the $5 million loan and for working capital!

Every capital raising has a significant number of placement flippers who sell out no matter what and move on to the next one. The first placement a few months ago was very sticky as it was arranged by the company and went to insiders/suppliers (a good sign) who overwhelmingly haven’t sold. The most recent 1.9c placement was a standard placement with lots of weak hands who have dumped in recent weeks.

So if they do pay off the loan they have at least two years of working capital (probably more like ten years since the $2 million annual interest cost is gone). If they rollover the loan they have almost $10 million in the bank and yet you keep on repeating how they are supposedly in imminent financial trouble? The risk-reward here has never been better IMO. The insiders are holding strong and have a very strong incentive to deliver strong results in FY22/23 to more than double the share price.

The FY21 results to be released within the next day are already known given the quarterly reports. Any experienced investor can tell the underlying business is in good shape given the quarterly reports showing positive cash flows (excluding tax and interest) and now a very healthy ~$4 million net cash position (after the two placements).

Most people tend to buy high and sell low. I aim to do the opposite and, besides doing extensive research, my number one indicator is sentiment. If the threads are quiet, very few positive posts, fearmongering downrampers present repeating the same trash over and over, etc. I usually buy up big. Sentiment changes!