NUH - A Good Sort, page-31

  1. 1,421 Posts.
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    Thanks Dangs for your mature response I gave a pretty detailed response as to when stocks go up to high they will come down back to earth if they have not got material profits. But even though I gave a pretty detailed reasoning because I used the 'G' word somehow it was found unsuitable.

    Think about it guys - your SP moved up a lot, investors will take profits and apart from development based announcements NUH receipts are low and have not grown substantially to ward off cap raise.

    So ask yourself the question - do you really deserve such a large increase in SP and for a re-rate? You say yes but I say no not until your ward off potential cap raises and prove you can be cash flow positive and build receipt scale.

    Accordingly, an equalibrium occurs between what you currently have which is some nice shiny new products as announced but no proof through large increases in receipts that they are a seller.

    Thus your shareprice comes back down to earth. Shareprices cannot stay in the sky forever until you are hitting strong growth in 4C receipts. And if you do go excessively sky high without receipts to justify your mcap you eventually end up like GSW or EDE and you get reality checked.

    If NUH proves itself through constant Q on Q profits then big funds will start to really show interest in NUH stock and you will get your re-rate but not yet.

    That is why your stock will go back down for the time being. Be grown up about it.
 
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