I have really tried to understand both the mindset and actions of Hallam and Co in deciding not to release information that confirms the progress of SBN as per your list but I am simply left to scratch my head. As anyone who has been involved in the small cap sector (and that is most of us I suspect!),the real task of management is to articulate and promote the company line and story not only to shareholders but to the broader market. This is where new investor interest comes from. The caveat here is that the information released by management is both creditable and factual. What is really frustrating me is that the company is currently being run by one person who has a "no word, no risk" approach to business that is impeding the telling of the Sun Biomedical story. I will now go on record as saying that this is a mistake.
GSW, the example that you provided in respect of the CMM distribution agreement highlights several things-:
1. Hallam got this one wrong. Actually, reference was made to the agreement in the prospectus document but then later released as an ASX announcement. The order was wrong, clearly wrong.
2. The company lacks visibility atm. If the only announcements to be made are to relate to the balance sheet, the reality is that many small companies like SBN would never release anything. Anything sound familar there? Unfortunately, by not displaying visibilty ( and in my experience that is the ONLY reason for any company to be listed),managemnt fails to service the primary objective (ie telling the company story) of being a listed entity in the first place.
Some investors who take positions in blue chip stocks are primarily focused on revenues and dividends. Those who invest in speculative biotech companies do so for the growth and development potential. This invariably is linked to an R&D program which provides the basis for the company line. New products, contracts, tender wins in new provinces, establishment of footprints are all examples of this company visibility. But the latter requires the story of the company and its progress to be told. Anything short of this fails both the company and its shareholders.
IMO, it is totally wrong that the company line including its current achievements should be made visible only through a medium such as HC - the company management of SBN (JH) is doing all shareholders a huge disservice in failing to disseminate significant company information via the ASX announcement process that highlights the progress of the company ie Avitar, Russian regulatory approval, China final doc submission to MPS, CMM distribution agreement, Latvia tender win, Canadian approval etc.
They need to be accountable and should be told so by all serious shatreholders of Sun Biomedical Ltd.
SBN Price at posting:
1.0¢ Sentiment: ST Buy Disclosure: Held
