This is my 5 cents worth for those who are getting jittery and incorrectly assuming that the volatility of a stock is perfectly correlated to the companies performance.
Firstly let me remind everyone that Moko is a real business, with real cashflows. Like any good tech company,this is a highly scalable business.
While the delayed Nasdaq listing has not helped the sp, we need to focus on the roll out of the app - is it on track? it's gone live now and advertisers have been plugged in ? What's the take up? Conversion rates? What are actual vs projected revenues ? Etc
From day one it has been about Monetizing the Platform - Once the market can quantify the actual revenue the 10 colleges will generate we can very quickly use these metrics to calculate the projected revenue generated from 600 colleges fully up and running. Projections vs Actual is what will turn heads. I truly believe this will be the catalyst for large scale market support especially from institutions investors and fund managers who are happy to sit on the side lines until the money starts rolling in.
With small cap companies esp Moko which is extremely tightly held we can expect to see the volatility we have witnessed over the last 3-4 years. If a big seller comes we get smashed and vice versa. The share price of this company will always trade in a large range and never go up or down in a straight line.
If my entry price is 3/4cents and my investment horizon is 3 years then all that matters is the price in the 3rd year when I sell.
When a large shareholder needs to liquidate their position it can easily collapse the shareprice because buyers quickly recognizes there is a seller and take their bids of the screen.
The broker is forced to pay the bid or sell at market price which is what we saw today.
In 10 days from today there could be a big buyer on market or sellers recognize there is someone accumulating and the sellers take their orders off forcing the price up.
The bottom line is aslong as I know I have invested in a high quality business that's growing their revenues/ profit, market cap and is able to execute on time then I'm not fussed about short term movements - no matter how extreme. Hindsight is always the best trader and Im not investing in this for a short term trade.
I'm convinced that due to the nature of this business - 24 months from now Moko will be taken over by a larger player who will want tto own this "premium marketing audience" of 10M college kids. It's a no brainer in my books.
MKB Price at posting:
17.5¢ Sentiment: ST Buy Disclosure: Held
