ISN (ASX) newsflow first, then cap raising

Originally posted by Southoz ↑

Hey Southoz, good post.

Taking on some of your points....Yes there may be stuff happening in the background that we ordinary people simply are not aware of, which may infact turn out to be company making. However after many many hours of research and speaking with the CEO, I had to draw my own conclusion.

At the end of the day we live and die by our own research. Perhaps my researching and analytical skills are not as well honed as some of the others here who are true believers.

I can tell you from experience, sometimes having a close relationship with the management team and having an intimate knowledge of the business can cost you dearly. There is real risk in being too early an adopter. You might end up getting in too early, before the point of maximum pain.

I am of the belief that even if these guys pull a rabbit out of their hat...it will take them 18 months to develop their platform and start to collect revenue. I would estimate that between now and then there will be a few more cap raising's, and potential numerous adjustments to their business plan. If this team is really as good as the cheer squad believe, then they will make the required changes to the model as it evolves...and they will eventually get a product to market that can make money. Give me an A grade management with a B grade business plan over a B grade management team with an A grade business plan every day of the week. The cream always rises to the top...ALWAYS!!!

The amount of money, and the ROE is yet to be seen...and how that affects the value of script already issued is any ones guess. I am of the belief however, that there is still much water to pass under the bridge...and from a risk management point of view, it would be far safer to sell today, and come back in 12 months time when the SP is 50% lower, and the top line revenue potential far greater.

Remember that a 50% drop in capital needs a return of 100% to get your capital back. Hence even if you missed the first part of the SP run, it would be safer to get back in once the future is assured......which unfortunately is some time away (if at all).

Kiril