CR’s have taken the teams attention,
The size and nature of seem to be a new dynamic on ASX over last little while.
With the preponderance of potential global tech and lesser extent bio stocks listing (back listing) on ASX CR’s are now falling into the category of increased scale for funding to bring existing models to realisation rather than the occasional bunch of 60+ boomers roaming around the outback in agreement that they really should knock out a resource DFS to initiate superannuation flows.
Seems the timeline between CR’s and model sustainable has shortened considerably, therefore the CR price and scale of raise and subsequent SP movement could be considered an FA tool in increased model transparency and validation.
The behaviour of EML, TTB in particular and AVH to a lesser extent today intrigued concerning above
Lads took on the market today with LBL @ 60 ish, of the < 100m MC’s this probably our favourite atm. The hound has been accumulating since sub 40 and has not sold a share, any sustained weakness we buy into and today good opportunity. Not the kind of stock that will probably feature of the DT thread but that’s not necessarily a bad thing. What I see is a stock trading close to PE of 20 with a conservative and excellent management forecasting revenue guidance to double over next 2 years backed by some strong IP.
Still holding IMA as the resource upgrade still pending before Santa arrives, the garage suggested 35 have not changed our mind.
Other sub 100m MC we like is PKS and AS1, AS1 is seasonal and coming off the back of worst 4c (winter) this quarter should be 1st to reflect increased scale and ability to ‘take’ price thru export. An early 4c play to be pondered if forum interested frank suggests, scale is MC with these type of stocks. Has broken 20c support last week but seems to have found new level 18 ish.
Hoping for continued weakness in XTE to accumulate and K2F while it has had a good run the garage has decided to hold as news flow should be beneficial concerning environment regulatory factors in next little while.
Lot of other things going on, one is watching TTB a play that if nothing else is testament to the above ‘CR validation’ of model, have been watching this stock for about a year now but never brought a share, there’s definitely ‘noise’ in the market, remember it as the CEO couple of years ago suggested he gave up the durries so he could live more in the moment, 1st instance was to dismiss him as bit of a yank tosser but on reflection as a reformed man of the durrie myself understood exactly what he was saying, funny how you identify stocks, will watch, out of CGL @ profit for obvious reasons, hound pushed the sell button while market was still thinking about it, good TA man.
Eric (eck to his mates) paid us a visit in garage, he is completely at ease in our presence to the point where when we 1st came across him some time ago we got a ‘sense’ of him every couple of days, now he just wanders around the yard in the open everyday as though he knows those 2 funny looking mammals offer protection or at very least no harm whatsoever. He just waddled in.
We offered a position within the team as going by his determination to invest time chasing down only the best grubs and fattest ants obviously a natural FA man, an area post my IQ downgrade that frank has suggested needs strengthening and being a monotreme got frank’s ok as the little bugger reckons last thing the garage needs is another bloody mammal and all the emotional crap that goes along with those things, hound and I didn’t actually define what a monotreme was in Eck’s defence.
Being a very ancient species, the hound also suggested his primal and primitive intelligence will be a good fit to relate better to the market, another bonus, the offer was accepted on the proviso that it be part time as ‘foraging’ time sacrosanct
. What I see is a stock trading close to PE of 20 with a conservative and excellent management forecasting revenue guidance to double over next 2 years backed by some strong IP.
