STT Weekend Lounge September 9-11, page-109

Just reposting my opinion on our side of the market when asked about IAM and future dividends. Still has relevance for almost any tech stock IMO.

To pay dividends a company must first be profitable and be willing to use their free cash flow to pay out dividends to shareholders instead of reinvesting for growth purposes. If IAM does get to that stage, more than likely our profits will be reinvested back into the company for more growth . IAM does however experience huge profit margins so we may be able to service both with our FCF in a few years if uptake is big . 'The dream' is to buy into a stock and for it to pay you dividends 10x what you originally paid for the stock.. Don't hold your breath though, maybe 5% of traders will ever experience this and have the balls to hold onto a spec stock for that long throughout their whole lifetime. The psychology behind trading is the most interesting topic in the world for me, i see it as a mix of TA/FA and the reading of the human brain. In the case of most of these speculative stocks most holders are forced 'long term investors' after the original pump/newsflow dries up and the stock becomes a toy for traders to make money via pip trading. People are tricked into thinking that all these stocks will make them rich overnight when these things take years to blossom and only the top 1% will stand the test of time. Think about it for a second, will it be easier for a company to go from say 200m mcap - 400 mcap; or 10m - 20m? At one point the short term growth in IAM's share price will start to look less attractive and easier money may be made elsewhere. Not saying to sell completely out but that moment will be a perfect time to take profits and leave a free carry parcel to see where the company ends up in future. A perfect example of this was XPE at 11c. Posters didn't want to hear it back at the time and would mention the list of 'prospects' and call anyone who didn't agree a downramper but time proved the theory correct once again like 1PG,NOR,IOT,RFN,TV2 etc..

We have no definitive client list, no actual revenue from this year or anything solid number wise in $$ so it would be almost impossible to guess anything $ related at this time. Just sit back and enjoy the capital gains for the meantime and take news as it comes. I wish i had enough money to leave my IAMOA/IAM and not have to think about it for a while as i am quietly confident we will have no problem reaching m4 as a minimum by the specified timeframe. The appointment of Mr Mark Rantall was the dealbreaker for me, there was literally not one person in Australia that would have been better suited for the role. But i am young/relatively poor and have 90% of my total money in the sharemarket. I will take any profits i can get and have had very nice returns using sentiment to swing trade speculative stocks this past year. This is not any advice to anyone as to what they should do with their shares as i think if you are really basing your trading on posts on an anonymous forum; you will not last long. I am always objective in every post that i make and encourage everyone to take everything they read with a grain of salt, whether it be a post on hotcopper or a quote directly from directors of companies. It is always better to under expect and be over delivered than to over expect only to be burnt. I will not be posting any more similar types of posts on the IAM forum anymore as i have said all ive needed to say in regards to this and am off to enjoy my weekend after what has been a sensational week of trading. Have a good weekend all and dont stress too much