Z1P - The Rise To $15.00, page-239

Yes it has been proven that Dollar Cost Averaging is a good strategy in the history of the stock market.

However this only applies to companies who are run on sound financial principles with prudent management.

If your running a loss making company in Australia you MUST address that first in order to generate positive cash flow to sustain expansion into other territories.

You do this if your interested in creating value for shareholders long term.

What you DONT do is buy another loss making company in another territority to exaggerate your losses.

The only way you can sustain that is to come back to market for another capital raise.

Any financial institution looking at those horrendous accounts will want a hefty discount

If they need to raise $200 million for example and the share price is $4.00 the placement underwriter is going to want to know they are able to sell those shares at a profit

They are unlikely to bid any more than $2.50 a share and resulting in massive dilution and the share price being drawn to the $2.50 placement price.

Rinse and repeat 12 months later for another CR at even lower prices.

The business plan is fatally flawed they have no hope of making a profit or generating positive free cash flow.