Diamagnetic repulsion being harnessed in the form of a micro-array to increase the permeation of chemical compounds found in everyday products has been, for the last 300 years, a technological "sleeping giant" which an eccentric and clever scientist by the name of Jeffrey Edwards discovered only about 15 years ago in a Perth laboratory. There are a few points that we should never forget:
- Mr Edwards had the foresight to start the patent application process in relation to various adaptations of the technology, for a potentially infinite variety of different commercial uses, with minimal help other than a small team of scientists in his employ. The technological innovation was unconventional and he had nothing motivating him other than his own commercially unproven belief in the potential commercial use that could be made of his technological adaptation of 18th century physics to modern everyday chemical compounds. Patents granted give the company a monopoly over the technology for 20 years. This is extremely important when new innovation is introduced into the world. Let's be very clear. THIS IS STILL NEW TO THE WORLD.
- Because the patent application is very slow, patents have only started to be granted by various patent offices around the world within last 5 or 6 years.
- Mr Edwards, and Glyn Denison now on board, were presented with a major obstacle to overcome at the very outset of this adventure. Who would take up this unproven adaptation of century-old physics? They were laughed out of many meetings.
- Finally, they scored big - Procter & Gamble saw the "light" and started up what it refers to as "light house project" with OBJ. What a grand start. They've released 3 products already in the last 3 years, and are planning on more. The validation of this technology has now been accepted by the global behemoth of FMCG products. That is a huge feat and a huge validation of what OBJ has achieved.
The technological "sleeping giant" has only just awakened, and the significance of diamagnetic repulsion capable of being used in common everyday products is only now starting to be realised. OBJ has managed to position itself at the centre of this awakening, as we are now just beginning to see. That is the big picture.
The "little picture" or short-term outlook is clouded by these considerations:
- the share price is crap;
- the company negotiated a shi**y royalty rate of only 2-3%;
- the company does not keep us informed about revenues;
- the P&G roll-out is slow, non-transparent, and OBJ is getting bugger all out of it in terms of direct cash revenues;
- there's no sense of urgency with the current board in transforming this company from a penny dreadful stock to an ASX100 stock where it should be; they're taking too long
- the Board has not been upfront in the past with performance milestones being reached, with the impression often given that they have indulged in unfair "share grabbing";
- where are the other partner deals? they should be here NOW!
- where's the money?!
- this current share price is CRAP!
I must admit, it's very difficult to see past the "little picture" details, because there's so many negative details that have arisen in the immediate past (last 3 years). But then I go back to the "big picture" and see that it was always going to be a very very hard road. But I think we are almost there now.
Just my current thinking.
J
(20min delay)