My position remains there is absolutely a niche for FBR in the block-laying marketplace. Still, it shouldn't take yet another decade to break through, or the invention will be replaced by others who break through more quickly. And, while penny stocks are always high-risk longshots, it feels as though FBR may have reached a point where the idea fails - or we see a big reverse split of shares to extend opportunities.
I keep chewing on this;
* FBR is of course most connected in Australia. Australia is a much smaller potential market than the US. Yet, the local homegrown FBR team has no deals to build homes in Australia. Is it because of the technology...or the sales experience of the team at FBR? They can't get even ... ONE deal?
* The US is where FBR should launch. It's a huge market. If FBR wasn't able to close a deal in the US after the success and media splash of building 10 homes in Florida, while the prospects where able to witness the builds and touch the machines, and speak face-to-face with the inventor and managers of FBR, how likely is it that now, with essentially no sales force on the ground, are they going to close any deals today in the US market? Through Zoom calls with the inventor at 2am? While the machines are parked in storage?
* I don't think Pulte or similar companies want to joint venture installation of masonry on their projects. They don't want to self-perform masonry just as they don't want to perform plumbing or electrical. They'd prefer to higher a mason contractor who includes installation of units at a great price without regard to old methods or use of robots. Same with CRH. They make and sell materials. They don't want to be part of a complicated JV such as WaaS. They would love for FBR to be used by their existing customers so they can sell more block rather than their products being designed out due to workforce shortages. So, there is something overly complicated in this WaaS model that is making the Pulte's and CRH's say it's not worth the hassle. Perhaps I'm mistaken...this is just my sense.
I'm choosing to hold on the chance my concerns are wrong, but it just seems like securing revenue is really going to be a challenge. I'll be very pleased if this post ages poorly due to some potential lead actually coming through in the next weeks or months.
FBR Price at posting:
0.5¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)