What's going on with VXL?, page-3

Creating shareholder value is a matter of perspective. Since investing a year ago I’m up 87% so CD and the team have created lots of value for me. If anyone is stilling on a paper loss at current then that is more just bad luck with timing and doesn’t mean that no value has been created. Just because you buy a share and It doesn’t go up straight away, every day and forever doesn’t mean management are bad and don’t care for shareholders.

Management have largely achieved their stated goals, however they have done so at a much slower pace than what was stated at the IPO, whilst the timetable has continued to slide over time (a big impediment to a SP recovery).

As explained the last time you asked these questions, at the current SP the company is quite overvalued based on the expected production profile of PH1 for 2015. The market wants to know about the MOUs which underpin PH2 and funding (securing debt, there is a risk of an associated CR). The current share price is discounting the company being successful in these hurdles. Currently we are in a spot where the market is overpricing the current but undervaluing the future potential. Until these aforementioned hurdles are clarified (and done so in an appropriate time) the SP will continue to struggle as there is currently no reason for new investors to buy in.

As per company announcements, production and sales are expected to ramp up into full commercial mode after March. The ramp up phase is a cash burning process so until it is completed there is no sales and P&L data to report. We will no doubt get an update on progress in the March quarterly, however the first likely instance that we will get credible information on the sales and P&L of PH1 will be in the June quarterly as they should have been in a steady state production for almost a full quarter. Do you actually read anything the company publishes? Why should the SP have been smashed after the EGM last week? Does the fact you thought it should have been smashed but it wasn’t suggest that your view was wrong?

At the end of the day if you don’t think the company discloses enough, think the share price will fall, a CR is coming, the company won’t make profits because of the your omnipotent belief in Chinese Industry, why did you even buy in again? Given the points above and all the problems, which are negative for the outlook of the SP, why do you complain so much about the share price falling when this is what you are forecasting?