Makemoney 303,
I agree that on a charting perspective the share price is looking to dip below 10cents.
I have started to reload at 10.5cents but will save the rest for over the next couple of weeks. This is purely on a charting basis.
Yesterday NUH announced a distribution deal with Best Buys. There was strength in the stock for half a day and then closed at 11cents. Today the buyer is sitting at 10cents. This is the indication that a "announcement" will not be suffice, rather the market want to see an announcement where NUH answers the issue of expansion finance.
It not just the sales forecast and distribution channels the market is looking for. I can say that the market is also looking for "where is expansion finance going to come from".
In the last Quarterly this is what NUH stated:
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This means in 5 weeks time according to NUH's own forecast they will have around $AU1.2-1.3m only. This mean they NEED more capital.
Its great that NUH are getting all the media coverage (AFR etc) and all the accolades at CES etc, however the market has already factored that in. Announcing more "awards" and more media coverage will not damage it but will do very minimal for the share price.
I spoke to a couple of my brokers in Perth, Melbourne and Sydney and they all said "why would you want to buy on market when you know they have to raise capital". I admit that NUH could get capital from a strategic investor(s) (Apple/Samsung or say a big manage fund) but if they cannot get it it a "sophisticated investor placement" at a 10-15% discount to the market price.
There is always a chance that the share price will reverse and move up. I am ok with that. Even if I buy the rest at 13cents, I will still replace my original holdings at no extra cost. If I can pick up the rest of what I want at 10cent and even some at below 10cents, I have increased by holdings by 30% with no extra expenditure.
I am positive on the long term future of the company but I am also a trader. I find you cannot be just a "long term" holder or "just to day trade". Being a hybrid of both has treated me well to date.
(20min delay)