How LOW do you think this will go? Back down to ?????? You think...

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billyen

6,892 Posts.

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16/04/20

12:09

Post #: 44075695
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Originally posted by mattilla ↑

Hi All,

Sorry I haven't been able to post, got sin-binned yesterday. Seems you're all dying to know what I thought of the announcement so I'll keep it brief.
- The stock was dumped heavily on open as expected. Anyone who bought on the hype at the start of trading is now sitting at a 25% loss. IMO that will be very difficult to make back. I can only hope that the few of us providing balanced arguments on this forum prevented a few folks from getting burned. In one of my early posts I predicted that the price would spike briefly above 2c then settle between 1.6 - 1.8 (brilliant right!).

- The announcement confirmed that the MICRO19 products are cosmetic. My interpretation of the wording is that they also do not contain a high percentage of alcohol. I believe the 80% figure referenced was talking about the the products in development which, per the Trademark search, is not expected to have testing completed until September (sanitiser ship will have sailed by that point). IMO the MICRO19 products are also still in breach of the TGA advertising guidelines so imo there is also a risk that product gets pulled at some point (unless they change their branding). I would want to confirm the alcohol percentage of MICRO19 with urgency if I was a holder, as every second news article about COVID-19 talks about needing sanitiser with >70%. Consumers are wising up on this issue and any product that doesn't make the grade just wont sell imo.

- The company have not addressed how they intend to pay off their debts, and in fact, have engaged in a further $330k debt facility to fund this product development. In my experience, this spells CAPITAL RAISE in the very near future. IMO the company will use this temporary spike in share price, let it churn for a few days to raise the VWAP, then offer a heavily discounted shares to sophisticated investors (probably in the 1 -1.2c range). This is how Alex and Co. make money in this game and it doesn't always benefit retail holders.

This is all imo and I am happy to be corrected on any of the above.

Good luck in your investments.

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How LOW do you think this will go?

Back down to ??????
You think they'll go bankrupt?
Do we have a chance of survival or is it too late?

I'm really scared....tell us what you think.

WNB Price at posting: 1.4¢ Sentiment: Buy Disclosure: Held
12 Upvote

0 Great analysis

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