While NUH has the right manufacturing partner and the product is getting many accolades the ultimate test will be "where is the money from expansion finance going to come from? With NO proven sales history Flextronics will NOT be lending money or do a 30/60/90 days payable.
Does not matter how good your product is unless you show the market the clear path to mass commercialisation. NUH is still trying to meet their Indiegogo sales.
No one is doubting NUH has a product with great potential, but successfully mas commercialising it is another issue. Right now even if NUH gets a order for 1m unit from lets say Apple they cannot meet it until they get expansion finance.
Also the market is sensing a capital raising given the cash and cash burn rate that is expected. The failure to break 12cents on the "Best Buys" announcement is indication that short term momentum is lost.
In hindsight I think when the stock ran to 14/14.5cents there was an expectation that a "large commercial deal with financing" was on the horizon. The expectation that this would come around the same time at the CES launch or shortly after. It was over-expectation that ran the stock the month prior to CES launch. If this did occur I can see the share price >20c today. Since this did not materialise the market has sold resulting in the share price at the 9.5c mark today.
Whether people like it or not, NUH is a speculative stock with a single product. Its always the speculation that was going to move the price up or down. Holders can complain about sellers being short sighted, weak hand or not knowing the fundamentals, and there is always the "manipulation" conspiracy theory, truth is NUH did not live up to the "over-expectation" so it getting sold. On top of a "low cash balance meaning Capital Raising imminent" its going to be brutally sold down. On the bright side if these issues can be answered in a satisfactory manner there could be a very quick rebound.
Got a few more at the 9.6/9.7c mark. Hopefully I an increase my holdings by 35-40% with my original outlay by trading this volatility
NUH Price at posting:
9.4¢ Sentiment: Buy Disclosure: Held
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