What has changed?, page-23

Okay lets see what you have said here and break it down. ... BTW this is just MY opinion.

Wishful thinking you guess? Its not. Its a carefully calculated opinion with fundamentals to back it up.

Your making an assumption that investors are dumping over fears of trump winning. This is a highly speculative stock Australian stock. It will not be effected over who is president. People in this stock are searching for high risk / return and care not for the elections. The sell off is from people in blue chip safe stocks who have money invested they cant afford to loose. The same applies to Brexit.

The market sets the share price yes. But in the long term you cant hide from fundamentals being:

From the annual report 2016:
1. Balance sheet shows NET ASSETS = $3,999,407
Total shares on issue as shown on pg 51, is = 1,228,716,371 current price = $0.087 which makes for a market cap of $106,898,324

This gives a PB of 26.72

So $26.72 for every $1 worth of company assets at the current price. That is at a share price of $0.087 which is already well over valued.

2. All this company has really done is reported that they are ahead of schedule with 3 prototype micro satellites and have arranged with a company to launch them.

3. There are no estimates of what the possible returns could be in the future. This is because the launch in 2017 is of the first 3 prototypes. Any income may still be a long way off. So far off that they don't want to even mention when this may be.

4. At presentation SAS is one of several companies and with their current share price any potential investors with big money who know how to value stocks will not be on board.

5. The purpose of this event is to raise more capital. Since SAS can only raise limited debt due to their no income, they can only create and sell more shares to raise additional capital.

This is unless the deal is financed by a potential client (which will reduced future returns) or unless they have enough cash to build the proposed 200 nano satellites.

Given that the share price is currently so over valued it would make sense to issue more shares in the near future to raise maximum amount possible. When they do this, the stock will be valued properly by institutional investors who will not be willing to pay such a high price and the stock will drop.

6. Given how much money some people have made buying at a reasonable price, they will not be willing to risk loosing say $5k on a stock they initially risked $500 on and will be quick to sell. Many of these people will be sitting at home now needing to see SAS with a 10.31% drop next to it and really re-thinking their investment. Given that many brought on emotion, its logical to me to think that they will sell on emotion.



This is my opinion and I could be wrong.

I could be wrong and for those that plan to hold this stock going into the near future I hope I am wrong.