Apart from the disappointment on the revenue, the fear and uncertainty on Hotcopper is contributing beautifully to the negative sentiment and imo influencing retailers to sell out at what are now 52 week low prices. The large percentage falls on quite thin volume is the very reason the roadshow is appropriate and why it is focussing on new institutional investment.
I am completely satisfied that a CR will not be part of the roadshow. I encourage you to do your own research. Many posters are saying the company will have nothing to say which is clearly off the mark if you understand how these things work. It does reinforce, however, that they should definitely be using this roadshow as a lead into improving overall communication with retail holders. The roadshow comes just before the Wave II launch which is not a trivial milestone. It will be the first proper scale launch of an OBJ based product. The company has already been informed that the volumes are substantial.
The second technology agreement, as the company has stated is in two parts. The first part, again as the company stated, is essentially an amendment to the first agreement. Therefore, I don't necessarily expect any significant upfront payment to show up in the June 4C, but I definitely expect something significant (millions) as soon as the 2nd part of the agreement is finalised in the months ahead.
P&G is a behemoth and it remains the only reason I remain invested in OBJ. Getting a behemoth to roll out new technology by necessity is slow but once it starts rolling it is hard to stop. The March 4C on June 4C is clearly not reflective of where OBJ is going. During the roadshow OBJ will aim to attract institutional funds that are looking well beyond 2017.
What they will be telling funds is that 2017 is in essence the first proper launch year for OBJ. The momentum finally starts when Wave II is launched in July- September, and it will be supported Wave III, IV developments and finalisation of Part 2 of the second technology agreement.
OBJ has further entrenched and greatly expanded its relationship with P&G and will roll out Wave II in the coming months. They are actually in a much better position , but for many the March 4C was the last straw, somehow proving that OBJ will never get anything out of its involvement with P&G. I haven't really followed OBJ closely for sometime as there was a core belief that it will eventually deliver but following the 4C the sheer negativity from so many holders has forced me to take notice. I admit my own expectations for revenue growth were out of sync but I rightly still have high expectations for Wave II and beyond.
Wave I was not 'the' launch that we all expected but I believe it will lead to a better packaged and marketed Wave II product/launch. I have no illusion that this is a very important launch for OBJ and they will be expecting significantly better penetration and use of their tech and therefore increased revenue.
OBJ Price at posting:
6.1¢ Sentiment: None Disclosure: Held
(20min delay)