Yes agree with some of what you say. Personally I think it's a classic case of a company valuation that ran ahead of itself. At $1 this was pushing into $300mill marketcap territory. That's a serious valuation to support in earnings. And clearly the revenues haven't come as quickly as expected. The revenue growth , under any normal circumstance, is impressive but not to the EXPECTATION that was borne out of management portrayal.
For me it's a pretty simple equation from here. The company needs to continue to grow and show it's potential at becoming a profitable organisation. Only then do I see it reaching the past marketcaps it has achieved. I see no reason why they aren't track to achieve further substantial growth, but then your everyday investors are often the last to know regarding internal issues, so you always have to treat these sort of investments speculatively and with care.
AJX Price at posting:
44.0¢ Sentiment: None Disclosure: Held
