MX1 3.75% 8.3¢ micro-x limited

I have no intention to sell, I understand the nature of an...

  1. 156 Posts.
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    I have no intention to sell, I understand the nature of an early-stage company that's investing in the R&D of new products and the inherent need for upfront capital and patience this entails. I have no doubt about the research expertise at MX1 or their ability to achieve engineering targets. I do not expect every new product to be created in the near term nor generate large sales immediately upon their introduction to the market. I know it takes time.

    My point is that for the ambition of growth that we all want to see, investors and management alike, we need more money. We're down to 11 million in the bank... I'm concerned about whether the shortfall in executing market traction with Rover may be an indication of a potential lack of commercialisation ability by management to generate the vital capital needed for continued growth. You can only treat the public as a piggy bank for so long before you need to make a return on that investment with sales. When you have on average, the first of their four products making less per quarter than the CEO's salary, that's a problem. They have a product on the market, it's finished, and they can't seem to sell it at any real quantity - that doesn't engender confidence. The negative sentiment demonstrated by the SP reflects this.

    Argus will show whether they can truly capture customer interest and be as effective capitalists as they are engineers. The team seems brilliant, but looking at prior quarters a lack of commercial nouse seems evident, and without money coming in, they'll be pushed aside by those with mature and effective sale pipelines. Argus will be the litmus test.
    Last edited by whirlswirl: 28/02/23
 
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