US is profitable on its own.We want rest of world there, and...

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DocMcstuffins

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24/10/23

09:24

Post #: 70498060
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Originally posted by tlin6: ↑

not sure what steady rising cashflow being referred to but cashflow from operations went from negative $2m to negative $6.6m.

there are various reasons for a new facility which has been known as far back as 2019 when the site was acquired - R&D center is definitely needed and they also want to build out facilities for the various new products. There are always "efficiencies" in building larger and yes there are configurations where you can't so smaller but that's clearly not the case here. no one ever talked about building 5 small facilities in various locations. modular means you can add to existing facility - which they are partially doing with machines.

2x build cost might have been raised but a good portion of that is also for permanent operation expansion.

the point is they are spending like a big established international, all at once aiming for an exponentially larger business by putting the finger everywhere. With actual revenue currently a tenth of planned capacity (and no they are not actually at $100m only on track to do so) and there being a 9-12 month lag for revenue - it IS go for broke.

sure there is a chance they get it done but there are also lower risk ways to do it. all this high risk play is why share price has been performing the way it is and will continue to do so until next year. all it takes is a revenue hiccup (even just delays) and shareholders are saddled with high cost non-performing business.

everyone in wait and see mode. don't even see any snipers, rock throwers or management buying here, the rock throwers can only say need to be patient long term investor - which is such an easy and obvious thing to say that it's not worth saying at all.

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US is profitable on its own.

We want rest of world there, and best way is to invest in sales staff.

Why do a cap raise, then not go hard on reinvesting those funds into growth? Why just sit on the cash?

We get you would like a more cautious approach. Feel free to take a large enough stake that you can vote that way.

But here, most of us are happy with the current strategy - if it stops paying off (growth wise) I'll reassess. I'm happy to be guided by results.

So far the results are great.

Last edited by DocMcstuffins: 24/10/23

PNV Price at posting: $1.16 Sentiment: Buy Disclosure: Held
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US is profitable on its own.We want rest of world there, and...

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US is profitable on its own.We want rest of world there, and...

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