numbers dont add up, page-11

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26/10/17

09:29

Post #: 28205727
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Originally posted by centrenow ↑

what other people post (emotive or not) isn't a reason to trade/invest in a stock. I have done plenty of research and worked through financials on this stock (and have traded it prev, mainly 2016). Reason I won't even entertain a trade currently is sales/cash on hand. There is no point raising funds to fund orders, when the sales volumes are massively below what is needed to break even let alone make a profit. I have run multiple models using different margin assumptions and using the company quarterly burn and half yearly/annual financials statements. IMO and based on my calculations only, and dependent on sales mix (now that Rova is half the RRP of airseflie) - something like at least 50-60,000 total unit sales per annum are needed. Compare that to announced figures (2700 sales in the first several months) and meantime each quarter the costs are still being incurred. The forecast cash burn for this quarter is 900k (excl rev), the half yearly shows $4m of cost for the first 6 months.

Just plug your margin and volume assumptions into a spread-sheet and see

good on you if you are on the right side of the risk/reward for your trades on this one. For me, its too risky. Unless Q3 Q4 show tens of thousands of units ..given the seasonality ...I don't see how this is financially viable business model

IMO only DYOR

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Earnings are heavily on the negative side.

Why would anyone invest here is a good question.

IOT Price at posting: 1.1¢ Sentiment: Sell Disclosure: Not Held
3 Upvote

0 Great analysis

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