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1.6¢ sky and space company ltd

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delux73

2,143 Posts.

235

26/06/18

11:04

Post #: 33949176
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Originally posted by dcob ↑

No doubt that some of the selling would be for the realisation of tax losses. Probably the larger parcels anyway because they're likely from 12 cent sophs giving up on getting 12 cents back in the current financial year. Unfortunately, these people aren't the types to re-buy come July 1 st because companies come to them seeking capital via businesses such as Brett Mitchell's Chieftain securities at a discount to the market for an easy gain.

You don't often see the sophs taking a bath like they have here so you have to wonder why they got this one so wrong. Around 200 million units were created at a 23% discount to the market and most of the time, you tend to see the price point defended vigorously both onscreen and via company announcements. You can't really have a go at the directors with respect to announcements, they gave it everything they had and couldn't manage to stimulate enough volume to get it to 12 cents for the 200 million churn. Certainly the fact that even now, it still has a market cap of $150 million with earnings based upon the last 9 months of $1 million has to have had impact for mine because it's absurd to even be trading at 8.2 cents currently.

With 50% of the share purchase plan unwanted, the true believers were capable of filling their boots so an unbiased investor has to ask themselves the most important question of all, why wouldn't Brett Mitchell and Peter Wall risk $15k of their own money when the company has stated on many occasions that they expect to be generating $600 to $1000 billion a year in revenue?

They have the ability to print another 304 million shares without shareholder consent which leads to the next couple of questions....Considering the belting the sophs have suffered from the last 23% discounted cap raise unsupported by it's directors, how many will be prepared to participate in the next raising and at what discount would entice them?

Patrick7%

"SA market analysis as per 25/06/2018

target price will be $0.45
P/B Ratio: 8.84 - strong compare with sector: 2.11
debt: 0 -ZERO my friends
Earnings Stability: 98.1%
Sentiment: undervalue"

Being new to Hotcopper and possibly investing, it's recommended not to accept such info at face value. Read the quarterly cash flow reports for context.

Zero debt.....Currently yes however, they have enormous outgoings over the next couple of years in an effort to see if this can work. They don't currently have the income to do so and the capital has to be generated from either debt or equity.

Earnings stability.....Look at the last quarterly, $1 million from the last 9 months but in the current quarterly yet to be announced, you'll at get to see how the 3 diamonds may go.

As for the price target.....45 cents really! $830 million market cap? Again, based upon the company $600 to $1000 million revenue rhetoric when the Aussie directors wouldn't even part company with $15k of their own hard earned at 12 cents? Based upon current information, an $83 million market cap at 4.5 cents remains very expensive. The neigh sayers are often the ones with the most clarity but it's up to you to work out each individuals motive.....Mine, i don't like witnessing the little guy getting smashed....Money's not easy to earn but easy to lose when you listen to the company rhetoric that they themselves clearly don't believe.

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You are spot on with the Sophs getting looked after in the next project -
SAS was the next project after the last disasters, retail holders are what they feed on.
But you never know, this might be the 1st ASX company in their history that actually makes profit lol.

SAS Price at posting: 8.2¢ Sentiment: None Disclosure: Not Held
3 Upvote

1 Great analysis

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