At this cap or lower WB could buy FBR with smoko money yet they are not why if the tech was that great why not if its a game changer why not if it was going to add significantly to WB profits why not
They have the money to buy FBR They have the Technology to elevate HX to a new level in their business
They have the population and the demand in construction in Europe and a giant market share -so the question is if they really really thought HX was the ducks why are they not buying shares in the company or taking one of these machines to Europe which was both fully operational how long ago
You need to read the play both Brickworks and WB are interested in FBR because of its a new tech with some promise as a startup. This is nothing new big companies enter into meaningless MOUS JVS all the time as it costs them nothing to do so
It is known in the industry as the what-if principal what if this really is a game-changer you see this all the time in the biotech computer software or mining big companies just saying ok let's get involved spend no money and string these guys out till the cash runs out holders lose patience and then clout on the business and delist it tale the IP and away they go -it happens regularly and often on the markets across the bourse.
This idea is now 15 years in the making and we are yet to see these two current machines in public building a house that has been onsold to a new home buyer do you know how long the original version took with the Caversham build I am talking about these two HX machines.
We are six weeks into 2020 they said in blog things would be happening end of last year cash burn is 7 mill every 12 weeks so 4.2 million last six weeks about what they raised from holders in an undersubscribed SP. They are playing a dangerous game with the cash waiting for one of these big players to move they are not moving and I can in my own opinion one of those players has ZERO intention of doing anything but wait it out.
Every day every week sees A1 evolving new innovations every major university in the world coming up with new ideas on robotics. You have to understand this is a machine that stacks bricks and prints patterns out hardly groundbreaking tech in the big picture
The element of surprise is gone now they made such a hoo-ha about a robot been the first in the world to build a house -The house was built in a factory yard in a controlled environment for peat's sake. Ok, let us paint a picture they make an ANN and say the HX has built 2 4 6 8 10 houses somewhere . What do you think the market will do given this has been spruiked in roadshows blogs etc. It will do jack that's what as its factored into an already very overblown SP based on zero earnings and the cash burn rate.
Questions need to be asked by holders you are low on cash another raising this year inevitable form either holders or a farm in from one of these partners which will absolutely dilute holders to the back teeth.
Earnings drive the SP of any company over the long long term there simply is no case to see any tangible earnings here in terms of profitability when the cash burn is 30 mill a year that's just economics 101
Alpha 1 over
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