Dear southcoast27,
I believe you are in a defend my point at all costs mode.
Since I’m holidaying at the other side of the world I have the benefit of reading the arguments in full and from all parties at once.
I find that you are turning every sentence everyone says against them, to use the last one:
”Comparing yourself to Buffett, etc?? Please.”
Nobody is comparing themselves to them, saying that one is using the same investment strategies that they use and saying it in a forum is not that.
Now, I’m certainly not the brightest poster on this forum, and I’m here to learn, but quite frankly you are criticising the posts from some of the great contributors of it and my observation is that you are not adding substance to your claims, it feels like there is no amount of explanation from them or anyone else that will satisfy you.
you said you would spell out the risks, but all you are adding is the header for the chapters.
Low capital:
I don’t think coming to the thread of a microcap and saying that it is a risk is a great contribution, we say in Spanish “you discovered that the water is wet”
Increased costs (and unknown recent sales):
Granted, and I concur that all that is being done is expensive… the fist thing I have to say is that we don’t know from an official source how much this is burning in comparison with the expected revenue that it is bringing. I certainly don’t believe all that money is going to waste, and doubt that the conversion rate is zero or significantly less than the money spent. Perhaps it is still a negative number, agree, but after a capital raise of $10m I don’t expect that money to evaporate within 6 months. We might still be making a loss, but the loss is relative to our MK, we are not talking of a mining company in exploration mode which all it does is burn money with zero revenue. We do have revenue, and it was growing under the direst circumstances (during the LCD time)
Unknown recent sales:
one thing I have to add to this risk is that our PS ratio was like 3.0 or so not long time ago, I believe it is a reasonable number for a company of this size. If you invested in this company, and believe in it as you also stated, this company is selling a product that is clearly superior to the ones from the competition. It is not the first one they have sold and is the second iteration to one that they have successfully sold.
Unrelated to this but a parentheses: Posters here know that doctors will not marry with only one device which means that they are likely to buy both from us and the competition, and likely to like both… what is wrong with that? I don’t think that they will buy once and never buy again… we got a great product.
Clear lack of buying support (LoBS):
what timeframe are we talking about? And what do you recognise as buying support? If there was LoBS then we would be already sub 20c or sub15c. It as of today is still, slightly, above the recent CR, and although the TA experts have said that it might go down to fill the 18c gap it has not occurred. I asked the question in another thread of “does every gap need to be filled?” And I do believe that not every gap needs to be filled… but let’s say that it will be filled, could you provide a price target? Is it filling that gap?
I have bought like three or four times and the thing keeps going down, so I’m not clearly a chartist, but with my average at 17c I still sleep well at night, even when we were in the 12c range. I am a long term investor, so even going down 20% below my average price is not going to make me sell, it is frustrating I admit, but the best chartist say it: don’t try to hit the bottom.
I honestly have called the confirmation bias issue before on this very same thread, so I welcome an alternative view and critical thinking, but that doesn’t mean that someone that is looking at the glass half empty without going REALLY deep in their arguments will cut it.
one last thing: When I read the article that Stealth posted I recalled reading it before (I remember the remark of EYE being a nice ticker) and my thought was: this is an old article that he found and decided to share… I didn't see any malice in it, just thought that he didn't check/care of the date.
My honest suggestions, and you seem to be clever enough to do so, are:
come with good factual, well argumented points of view and you will be heard.
Don't think that people here are acting with malice, don't personally attack someone for their posts and perhaps question it and they will give you an explanation.
Be willing to learn from others, I think everyone here learns a thing or two.
Now, and don't take this the wrong way please, if you feel like the smartest person in this room, I suggest you move to another room where you aren't because you will get frustrated and wont grow much here.
Cheers
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