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I was in Auckland at the time of the AGM so took the opportunity to attend. I chatted with the Board chair and chief financial officer after the meeting. Two points worth considering that were made clear to me;
1. The recent $2 mil bank facility was flagged and is set in place pending definite supply contracts. It is to begin rolling out the cloud technology which it was explained will be initially expensive in terms of training and personnel. That said once up and running the income stream will outstrip the motor sales. This will lead to increased profits because of better margins.
2. In their words there is a great deal of confidence amongst the board; so much so that all members have taken up their full legal entitlements in SPP schemes in the last few years.
I started tipping this company at 6 cents and have no reason to sell because this is no longer speculative. My view is the next boost in share price will accompany contract announcements flagged by the bank loan facility.
