Team There is more good news than bad news in today’s...

Team

There is more good news than bad news in today’s announcement.

While I would have liked to have seen a higher level of cash, I am confident that with the receivables at $1.49M as at 30 June 2014, the cash will start to flow in as product is shipped and received by the overseas clients.

This is probably a share that as an investor, you need to forget about for six to twelve months because there is a high likelihood chance it’s going to be in a totally rerated by then. Its currently not loved by the market. If your buying like me, that is a good thing, long may it be unloved.

My biggest concern has always been the risk of a further capital raising. Prior to buying in six months ago, I looked at the other two public listed entities that Mr Lev Mizikovsky is a substantial shareholder of being Tamawood (code TWD) and Astivita (code AIR).

Astivita recently was in need of some cash. I note that a company associated with Mr Mizikovsky provided a $2 million line of credit at CBA home lending rates. There were no convertible notes, just a cheap no strings attached loan.

After reading the announcements for these two entities, there appears to be a history of the Mizikovsky Group increasing its holdings and for the companies to conduct buybacks. I am certainly okay with that.

I recall an earlier post were Rade had stated that there was already too many shares on issue. I personally do not think there will be another capital raising, if needed, perhaps a short term loan until the cash roles in.

Just my thoughts. I will stop posting on this one for a few months until we have the AGM. I will certainly continue to buy if the price remains under two cents. My father always said follow the smart money, Mr Mizikovsky certainly has plenty of money and appears to be extremely smart, good enough for me. I wish him well.

Take care and be patient.