Losses? not sure that is the correct way to look at this...technically yes they are losses from an accounting perspective, but of course this a planned spend or if you like investment into a business structure that will produce income. Income cannot come before this structure is in place, its just not possible. There is nothing negative in these reports versus the business plan that MOKO have in place.
From shareholder investor point of view at this point of the MOKO cycle what we are looking for is not profit, but we are looking for announcements/confirmations of milestones being completed on the plan plus relationships/partnerships which confirm that the invested funds into the MOKO model are indeed moving in the correct direction.
Without meaning to be disrespectful to anyone reading this, the share price will only move on confirmations that this business model is going to work /produce future profits as planned. (ie speculative only)
This will come via announcements of scale, partnerships and commercial deals in particular with companies such as Nike, etc. These big brand companies are already there at the edges and it is probable that it wont be to long before a formalised relationship (s) of substance are announced, and therefore reinforce MOKO's objectives and lift confidence to the ever expectant shareholder.
As a brief overview: What MOKO is doing well (and why I am invested) is, developing and providing specifically tailored Rich Content, Rich Connection with defendable or if you like exclusive audiences. This is a huge shift that is taking place in the IT/Social media world...Deloitte COO reported 12 months ago that "Social Media has overtaken IT" this is a significant distinction and is driving real value changes in an information crowded online world. What does that mean? people now want information to be fluent, tailored and relevant to their EXACT lifestyle preferences, at their finger tips 24/7, achieve this and a very successful value exchange will take place. So far as I can see MOKO is the only company to identify and invested into this, I am sure others will follow, hence the importance of exclusive agreements and owned audiences... If companies do not adjust to a more tailor digital world then they will cease to exist in the not to distant future.
MKB Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
