Despite the amateurish & folksy sort of agm, the overall message is that costs are down & sales are happening. The really big one is to generate $25 million over 3 years. We are told the margins are good & should get better, & also that the Thai deal is being added to as it progresses.
Just on this alone with say, costs of $200k a month = $2.4 million, bump it up to $3 million for safety, we should see:
1 A quick return to cash flow positive
2 Certainly a gross profit, & depending on the gp% , a net profit before end of 2011/2012.
The new people did not set out to glamorise things, but to say it like it is, although, they left out the detail of payouts to the last lot. This gave a low key atmosphere, but they were open to lots of participation from share holders. The little lady who paid 44c. got a good hearing & a sensible responce. Sure, we should be sympathetic, but lots of people paid up to 86c. It is interesting that she thought the price was being deliberately kept low. By whom , don't know, but just possible by some wealthy share holders to embarrass the new management.
Not an exciting meeting, but at last there is a lot of sunshine.
MIK Price at posting:
4.4¢ Sentiment: LT Buy Disclosure: Held
