Something is Brewing, page-5

@sell

Before a company takes off, it usually has a few big players with large stakes accumulated at near lows ... Goldman are looking to be in the process of being one of those big players.

Captial Group and Ronald Lauder have been the foundation investors and continue to be... but it is highly encouraging that a global leading investment bank out there that believes in Fluence Corporation being able to execute on its strategy. They wouldn't be building a position otherwise. And notice they haven't issued a broker report yet... I'd expect them to initiate coverage after they feel they have filled their position.

Those who follow Fluence know exactly what is brewing ... the only issue is the share price... we are now well capitalised, have a US$50m project linked debt facility to be drawn on (funded by BOOT revenue stream), and 18 months of operations and ground-work as a merged entity.

Whilst the market is fixated on the large African desal contract, those who have crunched the numbers know that the profitability lies with the Smart Package products .. Nirobox, Aspiral, SUBRE and recurring revenue products such as BOOT projects. 

This is exactly what management have told us in quarterly update... their forecast and focus is on their high margin and high volume products this year and will be going forward.. its a process of educating the market/investors that large contracts with low margins are not actually good for the bottom line, and usually are recognised over several years... not something you can build a sustainable business on. They are merely 'bonuses' that raise our profile, but won't actually make us profitable.

What I can take out of Goldman building a position NOW, rather than later is that it infers that they have done their due diligence and that has lead them to take a position in Fluence at these prices levels.  They could easily have waited for the US listing to get their fill .. which is what other institutions look like they are doing.. as a US listing would mean Fluence have 'made it'.. and are significantly de-risk, however the share price will be multiples of where it is today.